FxWirePro: EUR/GBP finds major resistance at 0.8870, good to go long on break above

• EUR/GBP is extending grind higher as it holds above 20-DMA support.
   
• Technical indicators are biased higher, with RSI strong at 61 and Stochs biased higher.
   
• Sharp rise seen in the German yields after the ECB minutes keep EUR supported.
   
• ECB minutes showed Draghi & Co. considered dropping a pledge to accelerate its bond buying program.
   
• Pound came under further selling pressure after UK data missed expectations for the month of May.
   
• UK industrial and manufacturing production contracted 0.1% and 0.2%, respectively on a monthly basis.
   
• UK trade deficit widened to £11.86 billion in May, while construction output also missed consensus, contracting at a monthly 1.2% during the same period.
   
• Break above 0.8870 will see next bull target at 0.90 and then 0.9050. Bullish invalidation only below 200-DMA at 0.8631.
   

Support levels - 0.88, 0.8794 (20-DMA), 0.8631 (200-DMA)

Resistance levels - 0.8870 (channel top), 0.9024 (Nov 9 highs), 0.9058 (Oct 17 high)

Recommendation: Good to go long on break above 0.8870, SL: 0.88, TP: 0.89/ 0.90/ 0.9025/ 0.9050

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