- EUR/GBP is trading in a narrow range amid holiday thinned trading.
- The pair hovers around major trendline resistance at 0.8888, upside only on break above.
- Technical studies are inconclusive, RSI flat lined, MACD and ADX are not supportive of upside.
- Breakout at trendline will see upside till 100-DMA at 0.8935. Stochs are at overbought levels and hence keep chance for a correction.
- On the flipside, rejection at trendline, supported by close below 5-DMA at 0.8867 raises scope for downside.
Support levels - 0.8867 (5-DMA), 0.8821 (20-DMA), 0.88 (50% Fib retrace of 0.8297 to 0.9306 rally), 0.8733 (Nov 1 low), 0.8720 (trendline)
Resistance levels - 0.8888 (trendline), 0.8920 (38.2% Fib), 0.8935 (100-DMA)
Recommendation: Watch out for break below 5-DMA to go short, SL: 0.8890, TP: 0.8825/ 0.88/ 0.8760
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 64.1388 (Neutral), while Hourly GBP Spot Index was at -61.8062 (Neutral) at 0640 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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