- EUR/GBP has broken out of major channel top resistance at 0.8870, bias higher.
- The pair hit 8-month highs at 0.8938 and we see scope for further upside.
- BOE MPC member Broadbent’s speech disappointed market participants expecting some hawkish comments.
- Broadbent in his speech overnight failed to touch upon monetary policy or economic outlook.
- On the otherside, recent hawkish comments by the ECB Chief Draghi & other ECB members will continue to lend support to the Euro.
- Technical indicators on daily and weekly charts are biased higher, 0.90 next bull target.
- 20-DMA is strong support at 0.8808 and we see weakness only on break below.
Support levels - 0.89, 0.8873 (5-DMA), 0.8870 (channel top), 0.8808 (20-DMA)
Resistance levels - 0.90, 0.9024 (Nov 9 highs), 0.9058 (Oct 17 high)
Call update: Our previous call (http://www.econotimes.com/FxWirePro-EUR-GBP-struggles-at-major-trendline-resistance-at-08870-further-gains-only-on-break-above-795843) has hit TP1.
Recommendation: Bias higher, stay long for further upside.
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 67.763 (Neutral), while Hourly GBP Spot Index was at -107.399 (Bearish) at 0230 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest.
