FxWirePro: EUR/GBP pauses at major resistance at 0.8912, good to go long on break above

EUR/GBP chart on Trading View used for analysis

• EUR/GBP has paused upside at major resistance at 0.8912 (converged cloud top and trendline).
   
• Upbeat German unemployment data keeps the Euro buoyed as markets await ECB chief Mario Draghi's speech.
   
• Germany’s jobless rate unexpectedly fell to 5 percent in November from 5.1 percent, and the number of people out of work slid by 16,000.
   
• Data showed the economy is resilient and will  will bolster the European Central Bank’s belief that wage pressures are mounting.
   
• Draghi's speech will be in focus for any concerns on softening inflation expectations for the Eurozone, Eurozone economic growth as well as comments on Italy.
   
• Focus also on the euro area inflation reports due on Friday. Any disappointments here, combined with softer talk from Draghi, could hurt the Euro.
   
• Technical bias is higher. Breakout at 0.8912 could see further upside. Scope for test of 78.6% Fib at 0.90.
   
• On the flipside, 110-EMA offers strong support, break below negates bullish bias.

Support levels - 0.8877 (50% Fib), 0.8860 (5-DMA), 0.8833 (200-DMA)

Resistance levels - 0.8912 (converged cloud top and trendline), 0.8929 (61.8% Fib), 0.90 (78.6% Fib)

Recommendation: Good to go long on breakout at 0.8912, SL: 0.8860, TP: 0.8930/ 0.90

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.