FxWirePro: EUR/GBP on verge of cloud breakout, upbeat German IFO data supports upside

EUR/GBP chart - Trading View 

EUR/GBP was trading 0.10% higher on the day at 0.8636 at around 08:23 GMT, after closing 0.30% higher in the previous session.

The pair is extending previous session's gains and is hovering around 55-EMA and daily cloud resistance.

Upbeat German IFO Business Climate data keeps the single currency buoyed, breakout above daily cloud will fuel further gains in the pair.

Headline German IFO Business Climate Index rose to 99.2 May, beating forecasts of 98.2 and compared to 96.8 in the prior month.

Meanwhile, the Current Economic Assessment printed at 95.7 points in May as compared to 94.1 in the previous month and slightly higher that 95.5 expected.

The IFO Expectations Index improved firmly to 102.9 in May from the previous month’s 99.5 reading and better than the market expectations of 101.4.

Technical bias for the pair is turning bullish. RSI has edged above 50 mark. The pair is testing 55-EMA resistance at 0.8646, decisive break above 55-EMA and daily cloud will propel the pair higher.

Major resistance on the upside align at 110-EMA at 0.8710 ahead of 38.2% Fib at 0.8761. Retrace below 200H MA negates upside bias.