EUR/GBP chart on Trading View used for analysis
- EUR/GBP has paused upside at major resistance at 0.8912 (converged cloud top and trendline).
- Upbeat German unemployment data keeps the Euro buoyed as markets await ECB chief Mario Draghi's speech.
- Germany’s jobless rate unexpectedly fell to 5 percent in November from 5.1 percent, and the number of people out of work slid by 16,000.
- Data showed the economy is resilient and will will bolster the European Central Bank’s belief that wage pressures are mounting.
- Draghi's speech will be in focus for any concerns on softening inflation expectations for the Eurozone, Eurozone economic growth as well as comments on Italy.
- Focus also on the euro area inflation reports due on Friday. Any disappointments here, combined with softer talk from Draghi, could hurt the Euro.
- Technical bias is higher. Breakout at 0.8912 could see further upside. Scope for test of 78.6% Fib at 0.90.
- On the flipside, 110-EMA offers strong support, break below negates bullish bias.
Support levels - 0.8877 (50% Fib), 0.8860 (5-DMA), 0.8833 (200-DMA)
Resistance levels - 0.8912 (converged cloud top and trendline), 0.8929 (61.8% Fib), 0.90 (78.6% Fib)
Recommendation: Good to go long on breakout at 0.8912, SL: 0.8860, TP: 0.8930/ 0.90
For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.