- EUR/GBP trades an extremely narrow range below major resistance at 0.8870.
- The pair has bounced off 20-DMA support at 0.8794 on Friday's trade and we see weakness only on break below.
- Breach of stiff resistance at 0.8870 could see further upside momentum.
- Sentiment underpinned around the Euro following the recent hawkish surprise from the ECB over the last weeks.
- Immediate focus now on Eurozone Sentix Index and Germany Trade Balance data due later in the EU session.
- Break above 0.8870 will see next bull target at 0.90 and then 0.9050. Bullish invalidation only below 200-DMA at 0.8631.
Support levels - 0.8809 (5-DMA), 0.8794 (20-DMA), 0.8632 (200-DMA)
Resistance levels - 0.8870 (channel top), 0.9024 (Nov 9 highs), 0.9058 (Oct 17 high)
Recommendation: Good to go long on break above 0.8870, SL: 0.88, TP: 0.89/ 0.90/ 0.9025/ 0.9050
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