FxWirePro: EUR/GBP breaks 200-DMA at 0.8595, good to go long on dips

• EUR/GBP has shown a decisive breakout above 200-DMA at 0.8595, bias higher.
   
• EUR has been supported largely by a pick-up in the risk-on trade coupled with increasing weakness in the greenback.
   
• Upside over the last hour gained extra traction, following the comments from the German Chancellor Merkel.
   
• Merkel said that the euro is "too weak" and hence, makes German products cheaper.
   
• Eurogroup meeting could get some attention today ahead of advanced PMIs later in the week and ECB-speakers.
   
• Break above stiff resistance seen at 0.8595 (converged trendline and 200-DMA) has raised scope for test of 0.87 levels.
   
• Momentum indicators on weekly charts are biased higher. The pair has broken above weekly 50-SMA at 0.8534.
   
• Near-term reversal in trend likely on close below 200-DMA at 0.8595

Support levels - 0.8595 (200-DMA), 0.8516 (23.6% Fib of 0.92253 to 0.82970 fall), 0.8484 (20-DMA)

Resistance levels - 0.8651 (38.2% Fib of 0.92253 to 0.82970 fall), 0.87, 0.8735 (Mar 29 high)

Recommendation: Good to go long on dips around 0.8620/30, SL: 0.8570, TP: 0.8650/ 0.87/ 0.8735

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 136.897 (Bullish), while Hourly GBP Spot Index was at -32.5935 (Neutral) at 1030 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.