EUR/GBP – Struggling to Find Follow Through Below 0.71

EUR/GBP (0.7142)

Some talking points to consider in this Forex market:

• The euro has hit a new 11 week low. Price action is failing to find follow through below 0.71 against the Sterling.
• Short trade remains open as I am hoping for more profit from the fall lower from the October top.
• Trade strategy: Short euro sale at 0.7324

The EUR/GBP Forex market has hit a fresh 11 week low, however prices has yet to confirm a break of the chart support lining up at 0.71. This Forex market is attempting to extenda a bearish pattern initiated with the formation of a dark cloud cover candlestick. This is visible on the below EUR/GBP daily MT 4 chart, which we will use for today’s daily technical analysis.

Technical Analysis

Let’s discuss today’s daily EUR/GBP technical analysis. There is technical support lining up at 0.7118. A daily close below this technical level challenges the next technical support lining up at 0.7065. The alternative EUR/GBP technical analysis, should the euro reverse and move higher thus supporting this Forex market, notes technical resistance at a former support. This technical barrier lines up at 0.7147. A break above this level challenges the pivot, and October 30 high, at 0.72.

Trade Strategy

Now, let’s discuss today’s EUR/GBP trade strategy. As you know, I am short EUR at 0.7324. The trade remains open as I have booked 50 percent of the position. The stop loss has been moved to breakeven and I will attempt to capture further downside momentum. For today, I remain short euro in the EUR/GBP Forex market.