FxWirePro: EUR/GBP struggles at major trendline resistance at 0.8880, slips below 5-DMA

• EUR/GBP extends range trade for 2nd consecutive session, slips below 5-DMA, bias lower.
   
• The pair is trading in a 'Symmetric Triangle' pattern and is struggling at major trendline resistance at 0.8880.
   
• We see scope for upside only on breakout above Triangle top at 0.8880. Scope then for upside till 100-DMA at 0.8935.
   
• Technical studies are inconclusive, RSI flat lined, MACD and ADX are not supportive of upside.
   
• Stochs are at overbought levels and hence keep chance for a correction. Close below 5-DMA at 0.8870 raises scope for downside.

Support levels - 0.8821 (20-DMA), 0.88 (nearly converged 200-DMA and 50% Fib retrace of 0.8297 to 0.9306 rally), 0.8733 (Nov 1 low), 0.8720 (trendline)

Resistance levels - 0.8870 (5-DMA), 0.8880 (trendline), 0.8920 (38.2% Fib), 0.8935 (100-DMA)

Recommendation: Stay short on close below 5-DMA, SL: 0.8890, TP: 0.8825/ 0.88/ 0.8760

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -31.1678 (Neutral), while Hourly GBP Spot Index was at 29.9455 (Neutral) at 0940 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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