FxWirePro: EUR/GBP holds gains above 0.90 handle post BoE and upbeat UK retail sales data, bias higher

EUR/GBP chart on Trading View used for analysis

• EUR/GBP is extending gains on the day after the pair failed to slip below 0.90 handle.
   
• Upside intact despite upbeat retail sales data on Thursday which showed UK retail sales rose 1.4% on a monthly basis in November following October's 0.4% decline and surpassed the analysts' estimate for a growth of 0.3%.
   
• The Bank of England kept the policy rate unchanged with a unanimous vote and left the asset purchase facility unchanged at £435 billion. 
   
• In its policy statement, the Bank noted that Brexit uncertainties had intensified since the last meeting and the volatility surrounding the sterling had risen substantially. 
   
• British pound struggled to find demand despite robust UK retail sales data. 
   
• Britain's parliament will resume a debate on May's Brexit deal with Brussels on Jan. 9, the leader of the House of Commons Andrea Leadsom said on Thursday.  
   
• On the data front we have UK GfK consumer confidence, GDP, current account, PSNB, PSNCR along with EU consumer confidence.
   
• Technical bias remains bullish and we see scope for test of major trendline resistance at 0.9125.
   
• 5-DMA is immediate support at 0.9017. Break below will see minor weakness. 

Support levels - 0.9016 (5-DMA), 0.90 (78.6% Fib), 0.8959 (21-EMA)

Resistance levels - 0.9048 (88.6% Fib), 0.9098 (Aug 28 high), 0.9125 (Major trendline)

Recommendation: Good to go long on dips around 0.9030/40, SL: 0.90, TP: 0.9095/ 0.9125

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