- EUR/GBP is extending gains after break above 200-DMA in previous week's trade.
- Upside has paused shy of major resistance at 0.8970 (falling trendline).
- Technical studies are biased higher and we see scope for further upside on break above trendline.
- RSI is strong around 64 levels and biased higher. Stochs show bullish momentum. We see +ve DMI dominance and MACD also supports upside.
- Break above 0.8970 (trendline) raises scope for test of 61.8% Fib at 0.9069.
- On the flipside, 5-DMA at 0.8925 is immediate support. Break below could test 200-DMA at 0.8887. Violation at 200-DMA invalidates bullish bias.
Support levels - 0.8925 (5-DMA), 0.8887 (200-DMA), 0.8863 (20-DMA)
Resistance levels - 0.8970 (trendline), 0.90, 0.9014 (Nov 15 high), 0.9070 (61.8% Fib retrace of 0.9306 to 0.8686 fall)
Recommendation: Good to go long on breakout at trendline resistance at 0.8970, SL: 0.89, TP: 0.90/ 0.9070/ 0.91.
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 130.991 (Bullish), while Hourly GBP Spot Index was at -3.72321 (Neutral) at 1040 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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