FxWirePro: EUR/GBP breaks above 21-EMA, UK political crisis, dismal UK PMIs dent pound

Chart - Courtesy Trading View 

EUR/GBP was trading 0.22% higher on the day at 0.8386, extending previous session's 0.62% gains.

The pair has broken above 21-EMA resistance, raising scope for further upside.

The British pound remains depressed amid ongoing UK political crisis and disappointing UK PMI prints. 

UK Manufacturing PMI declines to 56.9 in January vs. 57.9 expected.

Further, UK services sector expanded at a softer pace than it did in December with the Services PMI edging lower to 53.3 from 53.6.

Demands for Prime Minister Boris Johnson's resignation over a series of lockdown parties in Downing Street continue.

Technical bias is turning bullish. Stochs and RSI are turning bullish. RSI is biased higher and Stochs have rolled over from oversold levels.

MACD shows bullish crossover on signal line. Price action is above 200H MA and GMMA indicator has turned bullish on intraday charts.

Support levels - 0.8371 (21-EMA), 0.8358 (20-DMA), 0.8345 (5-DMA)

Resistance levels - 0.84, 0.8421 (55-EMA), 0.8467 (110-EMA)

Summary: EUR/GBP intraday bias has turned bullish after break above 21-EMA. Scope for test of 55-EMA at 0.8421. Major trend reversal only above 200-DMA.