EUR/GBP Technical Analysis: Euro Slides to 7-Year Low

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Talking Points:

• EUR/GBP Technical Strategy: Short at 0.7341

• Support: 0.7219, 0.7131, 0.6989

• Resistance: 0.7290, 0.7324, 0.7361

The Euro continues to edge lower against the British Pound, with prices slipping to the lowest level in over 7 years. Near-term support is at 0.7219, the 61.8% Fibonacci expansion, with a break below that on a daily closing basis exposing the 76.4% level at 0.7131. Alternatively, a reversal above the 50% Fib at 0.7290 opens the door for a test of trend line resistance at 0.7324.

We sold EURGBP at 0.7341 and subsequently booked profit on half of the position. The remainder of the positioning remains open to capture any further downward momentum. The stop-loss has been trailed to the breakeven level (0.7341).

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EUR/GBP Technical Analysis: Euro Slides to 7-Year Low

Daily Chart - Created Using FXCM Marketscope

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

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