- The British pound slumped on Thursday following the Bank of England's (BOE) dovish rate hike.
- EUR/GBP spiked over 150 pips to break past 20-DMA at 0.8902.
- The pair is consolidating previous session's gains, is trading in a narrow range.
- Price action capped below 50-DMA at 0.8943, break above could see further upside.
- Technical indicators have turned bullish, RSI and Stochs biased higher, MACD is on verge of bullish crossover.
Support levels - 0.8899 (20-DMA), 0.8842 (5-DMA), 0.8760 (200-DMA), 0.8733 (Nov 1 low), 0.8682 (61.8% Fib retrace of 0.8297 to 0.93065 rally)
Resistance levels - 0.8794 (5-DMA), 0.88, 0.8894 (20-DMA)
Recommendation: Good to go long on break above 50-DMA at 0.8943, SL: 0.8840, TP:
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 70.7691 (Neutral), while Hourly GBP Spot Index was at -93.8034 (Bearish) at 0510 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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