FxWirePro: EUR/GBP capped below 200-DMA at 0.8594, intraday bias neutral

• EUR/GBP is struggling for direction, remains capped below 200-DMA.
   
• Intraday bias remains neutral, buy upside intact as long as pair holds above 5-DMA at 0.8571.
   
• Stiff resistance seen at 0.8595 (converged trendline and 200-DMA), decisive break above needed for upside.
   
• EMU’s Current Account and speeches by ECB’s Board members V.Constancio and P.Praet will be in focus.
   
• Momentum indicators on weekly charts are biased higher. The pair has broken above weekly 50-SMA at 0.8534.
   
• Weekly cloud top at 0.8635 is next major resistance above 0.8595. Scope then for test of 0.87 levels.
   
• Near-term reversal in trend likely on close below 50-DMA at 0.8534.

Support levels - 0.8571 (5-DMA), 0.8534 (50-DMA), 0.85, 0.8483 (20-DMA)

Resistance levels - 0.8595 (converged trendline and 200-DMA), 0.86, 0.8651 (38.2% Fib of 0.92253 to 0.82970 fall)

Recommendation: Watch out for decisive break above 200-DMA to go long.

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 63.9405 (Neutral), while Hourly GBP Spot Index was at -28.9034 (Neutral) at 0730 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.