FxWirePro: EUR/GBP extends upside, Brexit chaos and slower vaccination drive dent sterling

EUR/GBP chart - Trading View 

EUR/GBP edges slightly lower from session highs at 0.8718 and was trading 0.40% higher on the day at 0.8708 at around 07:35 GMT.

The pair is extending bounce off 55-EMA and bullish technical indicators are set to drive prices higher.

RSI is above 50 and biased higher. Stochs show momentum is strongly bullish. Stochs and RSI show bullish divergence from price action.

MACD is biased higher. Positive DMI is dominant and ADX is rising in support of upside.

Sterling under pressure as Brexit uncertainties and delayed supply of the COVID-19 vaccine in April weigh.

EUR/GBP set to resume upside. Volatility is high and bullish momentum is likely to drive gains.

Next hurdle on the upside aligns at 110-EMA at 0.8757. Breakout there could see test of 200W MA at 0.8835.

55-EMA is major support at 0.8667. Failure to hold above will negate any upside bias.