- EUR/GBP edges lower from session highs at 0.8614 and is currently trading at 0.8566.
- Pound edges higher after drop in UK ILO unemployment rate which was better than forecasts for an unchanged reading.
- The major finds stiff resistance at 0.8595 (converged trendline and 200-DMA).
- We see upside only on decisive break above. Momentum indicators on weekly charts are biased higher.
- Weekly cloud top at 0.8635 is next major resistance above 0.8595. Scope then for test of 0.87 levels.
- Near-term reversal in trend likely on close below 50-DMA at 0.8539.
Support levels - 0.8516 (23.6% Fib), 0.8513 (5-DMA), 0.85, 0.8460 (20-DMA)
Resistance levels - 0.8595 (converged trendline and 200-DMA), 0.86, 0.7651 (38.2% Fib)
Recommendation: Watch out for break above 200-DMA to go long.
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 71.0653 (Neutral), while Hourly GBP Spot Index was at 60.3765 (Neutral) at 0920 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
