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FxWirePro: EUR/GBP struggles at 0.79 handle after gap-up open, go long on break above

Pound sold-off as latest 'Brexit' polls suggests rising possibilities of the UK voting to leave the EU on June 23 EU referendum. EUR/GBP saw a gap up open and extended upside to hit session highs a four-week high of 0.79…

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FxWirePro: EUR/GBP struggles at 0.79 handle after gap-up open, go long on break above
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  • Pound sold-off as latest 'Brexit' polls suggests rising possibilities of the UK voting to leave the EU on June 23 EU referendum.
     
  • EUR/GBP saw a gap up open and extended upside to hit session highs a four-week high of 0.7905.
     
  • Pair was however rejected at highs, slips below 0.79 handle to currently trade around 0.7886 levels.
     
  • Momentum studies are bullish, RSI, Stochastics and MACD indicate upside.
     
  • 0.7906 is stiff resistance which is 61.8% Fib retrace of 0.8117 (Apr 7th high) to 0.7565 (May 25th low).
     
  • Break above finds next hurdles at 0.7927 (weekly 200 MA), 0.7947 (double top May 4th and Apr 24th) and then 0.80 (78.6% Fib).
     
  • On the downside, pair remains well supported above 50-DMA 0.7845 and 50% Fib at 0.7840.
    ​

Recommendation: Go long on decisive break above 0.79, SL: 0.7840, TP: 0.7945/0.80
 

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