- EUR/GBP trades an extremely tight 13 pip range as we head into the European session.
- The pair was rejected above 20-DMA on Tuesday's trade.
- Momentum studies are neutral, with a slightly bullish bias.
- 100-DMA at 0.8651 is major resistance on the upside. Break above to see test of 0.88 (trendline).
- Euro area final manufacturing PMI reports and EU economic forecasts on tap later in the European session ahead.
- BoE Super Thursday will also be a major driver.
Support levels - 0.8445 (5-DMA), 0.8522 (50-DMA), 0.8470 (Jan 26 low)
Resistance levels - 0.86, 0.8617 (20-DMA), 0.8651 (100-DMA)
TIME TREND INDEX OB/OS INDEX
1H Neutral Neutral
4H Bullish Neutral
1D Neutral Neutral
1W Neutral Neutral
Recommendation: Good to go long on break above 100-DMA at 0.8651, SL: 0.8545, TP: 0.87/ 0.8760/ 0.88
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 43.5985(Neutral), while Hourly GBP Spot Index was at -60.276 (Bearish) at 0640 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
