- EUR/GBP breaks above 21-EMA, hits 2-week highs of 0.8784, bias higher.
- Pound tumbles on BoE Carney’s comments, EUR/GBP pair jumped from below 0.8700 overnight to 0.8770.
- BoE Governor spoke about higher rates in the future and warned about Brexit risks. He also mentioned some mixed economic data.
- Technical studies are bullish, RSI biased higher and Stocks show bullish momentum.
- We see +ve DMI crossover on -ve DMI which adds to bullish bias.
- Next immediate resistance lies at 50-DMA at 0.8796. Break above targets 100-DMA at 0.8811.
- On the flipside, 21-EMA at 0.8731 is strong support, retrace below will see weakness.
Support levels - 0.8732 (21-EMA), 0.8708 (5-DMA), 0.8682 (61.8% Fib)
Resistance levels - 0.8796 (50-DMA), 0.8811 (100-DMA), 0.8827 (cloud base)
Call update: Our previous call (https://www.econotimes.com/FxWirePro-EUR-GBP-capped-at-21-EMA-good-to-go-long-on-break-above-1262718) is approaching TP2.
Recommendation: Book partial profits at high. Stay long for further upside.
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