FxWirePro: EUR/GBP spikes higher, pierces through daily cloud on reports of potential breakdown in Brexit talks

EUR/GBP chart - Trading View 

Technical Analysis: Bias Bearish

- EUR/GBP spikes over 1.35% to trade at 0.9133 at around 11:20 GMT

- Price action has broken above daily cloud 

- Volatility is rising as evidenced by widening Bollinger bands

- Momentum is bullish. Stochs and RSI are biased higher

- MACD and ADX support upside in the pair. MACD confirms bullish crossover on signal line

Support levels - 0.9078 (daily cloud), 0.9042 (5-DMA), 0.9006 (55-EMA)

Resistance levels - 0.92 (Wedge top), 0.9291 (Sept 11 high), 0.93 (psychological mark)

Summary: The British pound collapsed across the board on reports that UK Prime Minister Boris Johnson is "ready to pull out of Brexit talks". Commenting on the prospects of an EU-UK trade deal, EU Commissioner for Financial Services, Mairead McGuinness, said "it's not looking good. The UK s failing to understand the need for compromise." Technical studies also support upside in the pair. Scope for test of 'Wedge top' at 0.92. Break above will fuel further gains.