- The euro rose, halting a 2-day losing streak against the British pound amid concerns that Britain would not adhere to EU rules and regulations.
- On Wednesday, the pair fell as low as 0.8433 as a strong final reading of the UK services PMI for January boosted the British currency.
- EUR/GBP is trading 0.1 percent up at 0.8468, having hit a high 0.8537 on Tuesday, its highest since January 20.
- Technical indicators are bullish: RSI point north, Stochs indicate a bullish crossover and MACD supports upside.
- Immediate resistance is located at 0.8487/ 0.8498, a break above could take it near 0.8518 (55-EMA).
- On the downside, support is seen at 0.8452 (5-DMA), a break below could drag it till 0.8445 (10-DMA).
Recommendation: Good to buy on dips around 0.8460, with stop loss of 0.8452 and target price of 0.8498.
