Pound Struggling to extend gains against the Euro

Points to consider in this Forex article:

• Euro hits a three month low against the British Pound.
• Positive RSI hints at a possible rebound.
• Trade strategy: Short sale at 0.8995.

The EUR/GBP Forex market has hit its lowest point in nearly three months but price action has failed to close below a key cluster zone on a daily basis. There is also positive RSI on the below daily MT 4 chart. This hints at a possible correction higher in the near-term. There is no confirmation of a reversal as of yet and a short EUR sale remains open.

Euro Technical Analysis

Let’s look at today’s EUR/GBP technical analysis. There is near term support lining up at the November 24 low. This downside barrier is at 0.8460. A daily close below this first technical support level challenges the September 6 swing bottom. This technical barrier lines up at 0.8335. The alternative euro technical analysis notes the first upside barrier lining up at 0.8545. A break above this first upside barrier challenges the next technical resistance level at 0.8675.

Trade Strategy

Let’s look at today’s trade strategy in this Forex market. There is a short sale in play at 0.8995. This trade has already hit the first target. Half the profits were booked and the stop loss was trailed to breakeven. The remainder of the trade remains open to catch any further weakness in this Forex market and British Pound strength.