- EUR/GBP trades 0.23% higher on the day, edges above 5-DMA at 0.8881.
- The pair holds 20-DMA supports at 0.8863, we see weakness only on break below.
- Technical studies do not provide a clear directional bias, 1H 200-SMA is major resistance at 0.8907.
- Breakout above 1H 200-SMA could see extension of upside, scope then for test of 100-DMA at 0.8954.
- On the downside, break below 20-DMA could see retrace till 0.8730 (major trendline support.
Support levels - 0.8881 (5-DMA), 0.8864 (20-DMA), 0.8811 (Nov 10 low)
Resistance levels - 0.8920 (38.2% Fib), 0.8954 (100-DMA), 0.90 (trendline)
Recommendation: Wait for clear directional bias.
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -24.0005 (Neutral), while Hourly GBP Spot Index was at -106.748 (Bearish) at 0830 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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