FxWirePro: EUR/GBP consolidates major trendline break at 0.89, bias higher

EUR/GBP chart on Trading View used for analysis

• EUR/GBP has resumed upside after a brief pause in the previous session's trade.
   
• The pair is likely consolidating break a major trendline resistance at 0.89, bias remains bullish.
   
• The pair has resumed upside, has ignored spinning top formation in previous session's trade.
   
• Brexit uncertainties continue to dent sentiment surrounding the British Pound.
   
• Technical indicators support upside in the pair. Momentum strongly bullish. 
   
• Break above 61.8% Fib has raised scope for test of 78.6% Fib at 0.90 mark.
   
• We see weakness on retrace below 0.89 support. Violation at 200-DMA negates bullish bias.

Support levels - 0.89 (5-DMA and trendline), 0.8877 (50% Fib), 0.8835 (200-DMA)

Resistance levels - 0.8958 (July 20 high), 0.90 (78.6% Fib)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-EUR-GBP-breaks-major-trendline-resistance-on-track-to-test-786-Fib-at-090-stay-long-1465842) has hit TP1. 

Recommendation: Hold for further upside.

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.