EUR/GBP: Bullish Bias Intact, Targeting 0.8700 on Break of 0.8600

EURGBP retest near its previously broken resistance level  0.85184 and showed a minor pullback.   Intraday bias  remains bullish as long as support 0.8500 holds. It hits an intraday high of 0.85861 and is currently trading around 0.85839.

Technical Analysis

The pair is currently trading above the 34- and below 55-EMA on the 4-hour chart.

Bearish Trend Confirmation: Any break below 0.8500 confirms an intraday bearish trend. A drop to 0.8450/0.8400/0.8380/0.8300 is likely.

Near-Term Resistance:  The near-term resistance is around 0.8600. Any violation above will take the pair to 0.86650/0.8700.

Indicator Analysis (4-hour chart)

• CCI (50): Bullish
   
• Average Directional Movement Index:  Neutral

Trading Recommendation

It is good to buy on dips around 0.8550 with SL around 0.8500 for a TP of 0.8700.