FxWirePro: EUR/GBP breaks 100-DMA at 0.8626, good to go long on dips

Fundamental factors:
 

• Pound Sterling underperforms in the Asian session as ‘hard-Brexit’ induced worries resurfaced.
• Focus now shifts towards release ahead of the Eurozone Sentix Investor Confidence and unemployment rate numbers.
• German trade balance data slightly better than expected, euro could garner support.
   

Technical Analysis:
 

• EUR/GBP bounces of 20-DMA at 0.8454 on Tuesday's trade (last week).
• Upside gathers steam as we head into European session.
• The pair has breached major trendline resistance and has taken out 100-DMA at 0.8626.
• Momentum studies are bullish, we see scope for test of 0.8765 (50% Fib of 0.9225 to 0.8304 fall).
• Bullish invalidation only below 20-DMA currently at 0.8481.
   

TIME    TREND INDEX        OB/OS INDEX    

1H          Bullish                    Overbought    
4H          Bullish                    Overbought        
1D          Bullish                    Neutral, Bias higher        
1W         Bullish                    Neutral , Bias higher    

Support levels - 0.86, 0.8551 (5-DMA), 0.8501 (78.6% Fib)

Resistance levels - 0.8656 (61.8% Fib), 0.87, 0.8765 (50% Fib)

Recommendation: Good to go long on dips around 0.8625, SL: 0.8550, TP: 0.8660/ 0.87/ 0.8765