FxWirePro: EUR/GBP breaks above 0.8955, eyes 61.8% Fib at 0.9044, stay long

Refer EUR/GBP chart on Trading View

• Sterling weak across the board on continuing Brexit concerns and a hesitant BoE.
   
• BoE's McCafferty reaffirming BoE Governor Carney's call that rate hikes will be small and slow for several years weigh on the pound.
   
• EUR/GBP extends gains after break above major trendline resistance at 0.8955.
   
• Momentum with the bulls, scope for test of 61.8% Fib at 0.9044. Break above to see further upside.
   
• That said, bearish divergence on Stochs raises scope for pullback. 
   
• Traders await negotiations between the UK and the European Union to begin again in the coming weeks.

Support levels - 0.8963 (50% Fib), 0.8937 (5-DMA), 0.8901 (21-EMA)

Resistance levels - 0.9044 (61.8% Fib), 0.91, 0.9159 (78.6% Fib)

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 5.95271 (Neutral), while Hourly GBP Spot Index was at -63.6514 (Neutral) at 0745 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.