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FxWirePro: EUR/GBP Daily Outlook

Chart - Courtesy Trading View 

Technical Analysis: Bullish

- EUR/GBP was trading 0.11% higher on the day at 0.8548 at around 10:50 GMT

- The pair is extending channel breakout and is on track for further gains

- Price action is above 200-DMA and daily cloud, Chikou span is biased higher

- Momentum is bullish, Stochs and RSI are in overbought territory, but no signs of reversal seen

- GMMA indicator shows major and minor trend are strongly bullish

- The pair is extending bounce off 200-month MA, weakness only on break below

Support levels:

S1: 0.8484 (5-DMA)

S2: 0.8441 (200-DMA)

Resistance levels:

R1: 0.8590 (110-week EMA)

R2: 0.8730 (200-week MA)

Summary: EUR/GBP is set to extend gains. Overbought conditions warrant some caution. Major trend is bullish, pullbacks are likely to be shallow. Watch out for break above 110-week EMA for bullish continuation. 
 

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