FX.co ★ EUR/GBP Bearish Outlook, April 06, 2011 (Daily Strategy)

EUR/GBP

The downward break of yesterday's trend line was the first sign of a prolonged downward trend that could affect the pair.

The technical analysis allocates the pair a drop to support levels of at least 0.8320. It is important to also note the negative deviation received from the MACD indicator. The deviation provides support for the negative forecast and allows for a short entry with much higher certainty than the expected trend.

The first objective for the partial exercise of the short position is in relation to the first monthly support level 0.8570, while the second goal for the total exercise is in relation to the second level of monthly support low, around 0, 8320.