EUR/GBP Technical Analysis: Double Top May Be Taking Shape
DailyFX.com -
To receive Ilya's analysis directly via email, please SIGN UP HERE
Talking Points:
EUR/GBP Technical Strategy: Flat
Euro may be carving out a double top below 0.88 versus British Pound
Confirmation of reversal needed for actionable short trade opportunity
The Euro may be preparing to turn lower against the British Pound as the appearance of a Shooting Star candlestick hints at ebbing upside momentum. A reversal could ultimately lead to the formation of a double top below the 0.88 figure.
Near-term supportis in the 0.8582-0.8607 area (trend line, 23.6% Fibonacci expansion), with a break below that on a daily closing basis exposing the 14.6% level at 0.8503. Alternatively, a push above the 0.8725-77 zone (August 16 high, 38.2% Fib) opens the door for a test of the 50% expansion at 0.8914.
An actionable trade setup is absent for now.A reversal lower is in line with the expected fundamental narrativebut a Shooting Star is insufficient as a stand-alone reversal signal without further confirmation. As such, opting for the sidelines seems prudent for the time being.
Track short-term EUR/GBP trading patterns with the GSI indicator!
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from FXCM.