- EUR/GPB takes 20-DMA support and edges higher, we see scope for further upside.
- Price action has broken into daily cloud and is currently hovering around 100-DMA resistance at 0.8956.
- The pair is extending German Ifo-led gains, technical studies are also bullish with RSI and Stochs biased higher.
- Break at 100-DMA eyes major trendline resistance at 0.90 ahead of cloud top at 0.9026 and then 23.6% Fib at 0.9068.
- On the flipside, we see weakness on break below 20-DMA at 0.8876, scope then for test of 0.8730 (trendline).
Support levels - 0.8920 (38.2% Fib retrace of 0.8297 to 0.9306 rally), 0.8907 (5-DMA), 0.8876 (20-DMA), 0.8811 (Nov 10 low)
Resistance levels - 0.8956 (100-DMA), 0.90 (trendline), 0.9026 (cloud top), 0.9068 (23.6% Fib)
Recommendation: Go long on break above 100-DMA, SL: 0.89, TP: 0.90/ 0.9025/ 0.9070.
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 134.448 (Bullish), while Hourly GBP Spot Index was at -21.9792 (Neutral) at 0640 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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