EUR/GBP Technical Analysis – Prices bounced from support at a rising trend line set from the July 2012 low to test resistance in the 0.8566-83 area, marked by the 23.6% Fibonacci retracement and a familiar horizontal pivot in play since mid-February. A break above this exposes a trend line established from November 2012 at 0.8590 and the 38.2% Fib at 0.8605. Support is now at 0.8518. We have entered short.

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Daily Chart - Created Using FXCM Marketscope 2.0

--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com

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