- EUR/GBP is trading in a narrow range, intraday bias is neutral.
- The pair is extending minor upside for the 2nd consecutive day, but finds stiff resistance at 200-DMA at 0.8836.
- Price action is struggling to extend gains above 200-DMA and we see any upside only on decisive close above.
- Break below 0.88 handle will see test of major trendline support at 0.8755. Violation there will see further weakness.
- Price action is extending in a 'Symmetric Triangle' pattern and breakout above would provide clear direction.
Support levels - 0.88, 0.8755 (trendline), 0.8682 (61.8% Fib retrace of 0.8297 to 0.9306 rally)
Resistance levels - 0.8827 (5-DMA), 0.8836 (200-DMA), 0.8879 (100-DMA)
Recommendation: We prefer to wait for clear directional bias.
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -9.26811 (Neutral), while Hourly GBP Spot Index was at 81.5011 (Bullish) at 0645 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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