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FxWirePro: EUR/GBP eyes 110-EMA, Euro gains momentum on hawkish ECB minutes

EUR/GBP chart - Trading View Spot Analysis: EUR/GBP was trading 0.13% higher on the day at 0.8587 at around 05:15 GMT. Previous Week's High/ Low: 0.8589/ 0.8483 Previous Session's High/ Low: 0.8583/ 0.8548 Fundamental Ov…

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FxWirePro: EUR/GBP eyes 110-EMA, Euro gains momentum on hawkish ECB minutes
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EUR/GBP chart - Trading View 

Spot Analysis:

EUR/GBP was trading 0.13% higher on the day at 0.8587 at around 05:15 GMT.

Previous Week's High/ Low: 0.8589/ 0.8483

Previous Session's High/ Low: 0.8583/ 0.8548

Fundamental Overview:

The single currency remains bid across the board after hawkish European Central Bank ( ECB) minutes on Thursday.

The latest ECB minutes revealed that there was an extensive debate over the new guidance on interest rates and revisions to align with the board members hawkish views. 

ECB Vice President Luis de Guindos signaled that the central bank could revise it macroeconomic projections again in September after recent upbeat business activity in Q3.

On the other side, Brexit chaos continue to linger on the UK economy, weighing on the British pound. 

Technical Analysis:

- EUR/GBP was extending previous session's gains, trades above 5-MD

- The pair is testing daily cloud resistance, break above eyes 110-EMA

- Momentum is strongly bullish, Sctochs and RSI are sharply higher

- Volatility is rising and GMMA indicator shows a bullish shift on near-term

Major Support and Resistance Levels:

Support - 0.8551 (55-EMA) , Resistance - 0.8595 (110-EMA)

Summary: EUR/GBP was on track to close higher for the 3rd straight week. 0.8595 is major resistance (converged 21-week EMA and 110-EMA). Watch out for decisive break above for upside continuation. 
 

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