- EUR/GBP edges lower from 3-week highs at 0.8954, intraday bias higher.
- Technical studies support upside in the pair, we see scope for test of 50-DMA at 0.9019.
- Stocks and RSI biased higher, RSI edges above 50 levels. MACD line is showing a bullish crossover on signal line.
- We see a bullish 5-DMA crossover on 20-DMA, and slight bullish divergence on RSI which adds to bullish bias.
- 20-DMA at 0.8866 is immediate support on the downside, break below will see drag till trendline at 0.8746.
Support levels - 0.8890 (5-DMA), 0.8866 (20-DMA), 0.88, 0.8746 (Sept 27 low)
Resistance levels - 0.8994 (July 12 high), 0.9019 (50-DMA), 0.9068 (23.6% Fib retrace of 0.8297 to 0.9306 rally)
Call update: Our previous call (https://www.econotimes.com/FxWirePro-EUR-GBP-Trade-Idea-936333) has hit TP1.
Recommendation: Bias higher, stay long.
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -41.3399 (Neutral), while Hourly GBP Spot Index was at 79.5069 (Slightly bullish) at 0900 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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