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FxWirePro: EUR/GBP breaks major trendline resistance at 0.87, good to go long on dips

EUR/GBP extends winning streak, has breached 50% Fib retrace level at 0.8764. The pair had broken above major trendline resistance at 0.87 on Friday. Based on technical studies we see scope for further upside. EUR bulls …

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FxWirePro: EUR/GBP breaks major trendline resistance at 0.87, good to go long on dips
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  • EUR/GBP extends winning streak, has breached 50% Fib retrace level at 0.8764.
     
  • The pair had broken above major trendline resistance at 0.87 on Friday. Based on technical studies we see scope for further upside.
     
  • EUR bulls buoyed after new poll of French voter intentions on Saturday showed Emmanuel Macron is still likely to defeat Marine Le Pen. 
     
  • Positive data from the Eurozone with good trade balance and current account numbers are also EUR positive.
     
  • Focus now on ECB president Draghi's speech later in the European session for further impetus.
     
  • BoE is expected to maintain neutral policy stance at the March 16 monetary policy meeting, while Brexit developments continue to weigh on GBP

Support levels - 0.8764 (50% Fib retrace of 0.9225 to 0.8304 fall), 0.8713 (trendline and 5-DMA), 0.87

Resistance levels - 0.88, 0.8852 (Jan 16 high), 0.8873 (61.8% Fib)

TIME  TREND INDEX  OB/OS INDEX    

1H          Neutral                Neutral       
4H          Bullish                Overbought        
1D          Bullish                Overbought        
1W         Bullish                 Neutral      

Recommendation: Good to go long on dips around 0.8765, SL: 0.8710, TP: 0.88/ 0.8850/ 0.8870
 

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