- EUR/GBP has broken major trendline resistance at 0.90, we see scope for further upside.
- Momentum studies on weekly charts are bullish, RSI strong at 66 and biased higher.
- MACD supports trend higher. Price action is above weekly cloud and major moving averages.
- Next major resistance on the upside seen at 0.9190. Break there could see test of 0.9225 (Oct 2016 high).
- On the flipside, major support seen at 20-DMA at 0.8930. Bullish invalidation only on break below.
Support levels - 0.9029 (5-DMA), 0.90 (trendline), 0.8983 (20-DMA)
Resistance levels - 0.9190 (major trendline), 0.9225 ((Oct 2016 high)
Recommendation: Good to go long on dips around 0.9050/60, SL: 0.9020, TP: 0.9075/ 0.91/ 0.9190
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 1.41049 (Neutral), while Hourly GBP Spot Index was at -126.193 (Bearish) at 1140 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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