FxWirePro: EUR/GBP breaks above 21-DMA, good to buy on dips
The euro rallied to a near 1-week peak against the British pound as investors await developments in Brussels and London. The European Union and Britain begin their negotiations to agree a trade deal for the end of a Brex…
The euro rallied to a near 1-week peak against the British pound as investors await developments in Brussels and London.
The European Union and Britain begin their negotiations to agree a trade deal for the end of a Brexit transition period in December 2020.
The downside in the British currency appears limited amid growing expectations a new finance minister will raise public spending at next month’s budget.
EUR/GBP is trading 0.5 percent up at 0.8409, having hit a high 0.8412 earlier, its highest since February 20.
The pair broke above major resistance at 21-DMA and is trading above the 0.8400 level.
Momentum indicators are turning bullish: RSI point north, MACD supports upside and Stochs are biased higher.
Immediate resistance is located at 0.8420, a break above could take it near 0.8431.
On the downside, support is seen at 0.8347 (10-DMA), a break below could drag it till 0.8338.
Recommendation: Good to buy on dips around 0.8370, with stop loss of 0.8347 and target price of 0.8420.
