EUR/GBP—Short Euro Trade Initiated at 0.7324

EUR/GBP (0.7322)

• Resistance Levels: 0.7385, 0.7444, 0.7545
• Support Levels: 0.7259, 0.7180, 0.7054
• Trade Strategy: Short at 0.7324 with initial target of 0.7259

The EUR/GBP looks to be turning lower. Please note the below daily MT 4 chart and the appearance of an Evening Star candlestick. This is a bearish reversal sign and it has been confirmed.

There is short term technical support at 0.7258. A daily close below this level will challenge the technical support at 0.7180. Should the euro push higher, then there is technical resistance at 0.7385. This is the high achieved on March 25, 2015. A break above this level challenges the next technical resistance at 0.7444.

A short euro sale has been initiated at 0.7324. I have an initial target of 0.7259. This is the first support level. A stop loss is entered at 0.7385. This would be activated if price action moves through this resistance level. I will move the stop loss to break even after the initial target is achieved.