FxWirePro: EUR/GBP hits new 11-month highs at 0.9072, trendline at 0.91 in sight, stay long

Refer EUR/GBP chart on Trading View

• EUR/GBP has resumed upside after break above strong trendline resistance at 0.9030.
   
• The pair hit new 11-month highs at 0.9072 before paring some gains to currently trade at 0.9065.
   
• The single currency ticked higher after upbeat German Ifo Business climate data.
   
• Headline German business climate index rose to 103.8 in August beating consensus estimates for an uptick to 101.9.
   
• Price action is above daily cloud and upward sloping major moving averages support upside bias.
   
• Momentum is with the bulls. RSI signal strong upside bias at 71 levels. DMI and MACD also support upside.
   
• The formation of a "Golden Cross" formation on the daily charts further raises scope for upside.
   
• The pair is holding above 21-EMA support and only break below could see minor weakness.
   
• Next major resistance lies at 0.91 levels (strong trendline resistance).

Support levels - 0.9030 (5-DMA), 0.8970 (21-EMA), 0.8898 (50-DMA)

Resistance levels - 0.91 (trendline), 0.9225 (Oct 2016 high), 0.93 (Aug 2017 high)

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -32.9275 (Neutral), while Hourly GBP Spot Index was at 27.0931 (Neutral) at 0815 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.