FxWirePro: EUR/GBP breaks major trendline resistance, on track to test 78.6% Fib at 0.90, stay long

EUR/GBP chart on Trading View used for analysis

• EUR/GBP has shown a break above major trendline resistance at 0.89 and is on track for further gains.
   
• The pair trades with a bullish momentum and break above stiff trendline resistance has opened up possibility for test of 78.6% Fib at 0.90 mark.
   
• Data from the European Union on Thursday was not very supportive. German inflation missed expectations, while the EU Consumer Confidence Index remained depressed at -3.9 in November.
   
• Economic Sentiment Indicator fell to 109.5 from a downwardly revised 109.7, better, however, than the 109.00 expected. 
   
• For today, German Retail Sales and EU preliminary November inflation data awaited for further impetus.
   
• Technical bias supports upside, close above daily cloud will take the pair higher. 
   
• Immediate support at resistance lies at 0.8877 (converge 5-DMA and 50% Fib) and 0.8929 (61.8% Fib) respectively.

Support levels - 0.8877 (converge 5-DMA and 50% Fib), 0.8834 (200-DMA)

Resistance levels - 0.8929 (61.8% Fib), 0.90 (78.6% Fib)

Recommendation: Stay long on close above daily cloud, SL: 0.8860, TP: 0.8930/ 0.90

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.