- Fresh bid-tone seen around GBP, following the release of the latest ICM UK election poll.
- ICM poll puts UK conservatives on 45 pct, labour on 34 pct (11 percentage point lead) ahead of June 8 election.
- Markets shrugged-off upbeat Eurozone final services PMI and UK Markit Services PMI miss.
- Data released today showed European Monetary Union Markit Services PMI a6 56.3, above forecasts (56.2) in May.
- United Kingdom Markit Services PMI registered at 53.8, below expectations (55) in May.
- Price action above 200-DMA (0.8596) and daily cloud, bias higher. Technical studies on weekly charts also support upside.
- The pair is holding 5-DMA support at 0.8721, break below will see further drag.
Support levels - 0.87, 0.8651 (38.2% Fib), 0.8597 (200-DMA), 0.8571 (20-DMA)
Resistance levels - 0.8761 (50% Fib), 0.8787 (Mar 13 high), 0.8852 (Jan 16 high)
Recommendation: Good to go long on break above 0.8762, SL: 0.8650, TP: 0.8790/ 0.8850/ 0.8870
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 64.8061 (Neutral), while Hourly GBP Spot Index was at -35.1412 (Neutral) at 0940 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
