FxWirePro: EUR/GBP rangebound at cloud top resistance, recent Brexit-positive signs dent upside

EUR/GBP chart - Trading View 

EUR/GBP was trading largely rangebound on the day at 0.9060 at around 06:25 GMT.

Brexit optimism, global praise of the UK’s COVID-19 combat, vaccine test and easing of the lockdown restrictions bode well for the British pound.

The pair is extending trade in a 'Rising Channel' pattern, is struggling at cloud top at 0.9085, break out of cloud to see further gains.

Momentum studies are bullish. Stochs and RSI are sharply higher. RSI is above 60 with scope for further upside.

Positive DMI dominance and rising ADX support further gains in the pair. Volatility is rising as evidenced by widening Bollinger bands.

Analysis of GMMA indicator shows major and minor trend are bullish. Breakout above cloud will see test of channel top at 0.9178.

5-DMA is immediate support at 0.9041. Break below will see dip till 21-EMA at 0.8976. Bullish invalidation only below 200-DMA. 

Major Support - 0.8976 (21-EMA)

Major Resistance - 0.9178 (Channel Top)