- EUR/GBP seems to have broken sideways trend to extend gains.
- The pair holds above 20-DMA currently at 0.8440, weakness only on break below.
- Momentum indicators are biased higher, we see scope for upside.
- The pair finds strong support by 200-DMA at 0.8336, violation at 200-DMA could see drag upto 0.8078 (50% Fib of 0.6930 to 0.9225 rally).
Recommendation: Good to go long on dips around 0.8525, SL: 0.8440, TP: 0.8570/ 0.86/ 0.8633/ 0.8680
Support levels:
S1 - 0.8440 (20-DMA)
S2 - 0.84
S3 - 0.8348 (38.2% Fib)
S4 - 0.8336 (200-DMA)
Resistance levels:
R1 - 0.8571 (Dec 8 high)
R2 - 0.86
R3 - 0.8633 (100-DMA)
R4 - 0.8683 (23.6% Fib)
