- EUR/GBP extends gains above 0.79 handle after breaking major resistance at 0.7880.
- Risk-off in Asia post below estimates Chinese data has been supportive of the single currency, pushing the cross to flirt with fresh multi-week tops in the vicinity of 0.7949.
- 'Brexit' worries might continue capping any sharp upside for the Pound, thus limiting near-term downside for EUR/GBP.
- The pair is on track to test major resistance at 0.7947, break above will see gains upto 0.80 levels.
- 61.8% Fib at 0.7906 is now major support on the downside, we see weakness only on break below 0.7875 (trendline resistance turned support).
- Technicals are supportive of upside in the pair, Stochs RSI and MACD are biased higher.
Recommendation: Good to buy dips around 0.7920/30, SL: 0.7875, TP: 0.7950/ 0.7990/ 0.80
