Refer EUR/GBP chart on Trading View
- Sterling weak across the board on continuing Brexit concerns and a hesitant BoE.
- BoE's McCafferty reaffirming BoE Governor Carney's call that rate hikes will be small and slow for several years weigh on the pound.
- EUR/GBP extends gains after break above major trendline resistance at 0.8955.
- Momentum with the bulls, scope for test of 61.8% Fib at 0.9044. Break above to see further upside.
- That said, bearish divergence on Stochs raises scope for pullback.
- Traders await negotiations between the UK and the European Union to begin again in the coming weeks.
Support levels - 0.8963 (50% Fib), 0.8937 (5-DMA), 0.8901 (21-EMA)
Resistance levels - 0.9044 (61.8% Fib), 0.91, 0.9159 (78.6% Fib)
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 5.95271 (Neutral), while Hourly GBP Spot Index was at -63.6514 (Neutral) at 0745 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
