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Talking Points:
- EUR/GBP Technical Strategy: Flat
- Support: 0.7302, 0.7258, 0.7222
- Resistance: 0.7345, 0.7399, 0.7487
The Euro moved higher against the British Pound as expected after producing a bullish Piercing Line candlestick pattern. Near-term resistance is at 0.7345, the 61.8% Fibonacci expansion, with a break above that on a daily closing basis exposing the 0.7384-99 area (March 25 high, 76.4% level). Alternatively, a reversal below the 50% Fib at 0.7302 clears the way for a challenge of the 38.2% expansion at 0.7258.
We sold EURGBP at 0.7311 and subsequently booked profit on half of the trade. The remainder of the position was closed out at breakeven and we are now flat. Our overall bias continues to favor the downside and we will stand aside for now until a new selling opportunity presents itself.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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