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Forex: EUR/GBP Technical Analysis – Sellers Retake Initiative

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EUR/GBP Technical Analysis – Prices recoiled from support-turned-resistance at a rising trend line set from November 2012, forming a bearish Dark Cloud Cover candlestick pattern and hinting renewed selling is ahead. The bears are now testing support at 0.8549, the 38.2% Fibonacci expansion, with a break below that eyeing a longer-term trend line at 0.8533, followed by the 50% Fib at 0.8518. We continue to hold short.

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Daily Chart – Created Using FXCM Marketscope 2.0

Written by Ilya Spivak, Currency Strategist for Dailyfx.com

To contact Ilya, e-mail ispivak@dailyfx.com. Follow Ilya on Twitter at @IlyaSpivak

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