- EUR/GBP finds stiff resistance at daily cloud, we see further upside only on break above.
- The pair is holding break above 20-DMA at 0.8871 on Monday's trade.
- Technically indicators are biased higher, we see scope for further upside. RSI and Stochs are biased higher.
- Price action has broken 20 and 50-DMA. 5-DMA is on verge of bullish crossover on 20-DMA.
- Break above daily cloud finds next major resistance at 100-DMA at 0.8945 ahead of 0.9022 (Oct 20 high).
- We see bullish invalidation on break below 20-DMA at 0.8871.
Support levels - 0.8893 (50-DMA), 0.8871 (20-DMA), 0.8867 (5-DMA), 0.88 (50% Fib retrace of 0.8297 to 0.9306 rally), 0.8770 (200-DMA)
Resistance levels - 0.8928 (cloud base), 0.8945 (100-DMA), 0.8995 (July 21 high)
Recommendation: Good to go long above 0.8930, SL: 0.8870, TP: 0.8990/ 0.9020/ 0.9085.
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