- EUR/GBP extends surge, hits fresh 7-year highs at 0.9269 on Friday's trade.
- The pair has been trading in a rising channel and has shown decisive breakout of channel top at 0.9185 last week.
- ECB's Draghi speaking at the Jackson Hole Symposium, refrained from jawboning the EUR and expressed confidence in the global economy recovery.
- EUR is scaling new multi-month highs after Draghi's silence on the exchange rate disappointed EUR bears.
- Technical studies still bullish, we see scope for further upside, test of major trendline resistance at 0.9335 likely.
- However, stochastic and RSI are in overbought zone, so caution advised.
- Retrace below channel top at 0.9195 could see drag till 20-DMA at 0.9106.
Support levels - 0.9224 (5-DMA), 0.92, 0.9195 (channel top), 0.9105 (20-DMA)
Resistance levels - 0.9269 (Aug 25 high), 0.93, 0.9335 (trendline)
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