- EUR/GBP continues bull-run, hits 8-year highs at 0.93064, bias still higher.
- The pair has broken major resistance at 0.9185 (channel top) in last week's trade, scope for further upside.
- 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 bullish, RSI and Stochs on monthly charts highly bullish.
- We see major trendline resistance at 0.9310, break above will see further gains.
- However, stochastic and RSI are in overbought zone, so caution advised, we could see some correction before the next leg higher.
- Retrace below channel top at 0.9195 could see drag till 20-DMA at 0.9124.
Support levels - 0.9252 (5-DMA), 0.92, 0.9195 (channel top), 0.9124 (20-DMA)
Resistance levels - 0.9310 (Trendline resistance), 0.94, 0.9411 (Oct 2009 high), 0.9477 (88.6% Fib retrace of 0.9804 to 0.6930 fall)
FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest
