- EUR/GBP extends range trade at major trendline resistance at 0.8870 (channel top).
- The pair needs a decisive break above to extend upside. Break above 0.8870 will see next bull target at 0.90 and then 0.9050.
- 20-DMA is strong support at 0.8797 and we see weakness only on break below.
- Weekly charts show neutral to slightly bullish bias. We see bullish invalidation only below 200-DMA at 0.8633.
- We expect the recent hawkish comments by the ECB Chief Draghi & other c.bank members will continue to lend support to the Euro.
Support levels - 0.8824 (5-DMA), 0.8797 (20-DMA), 0.8633 (200-DMA)
Resistance levels - 0.8870 (channel top), 0.9024 (Nov 9 highs), 0.9058 (Oct 17 high)
Recommendation: Good to go long on break above 0.8870, SL: 0.88, TP: 0.89/ 0.90/ 0.9025/ 0.9050
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -14.4348 (Neutral), while Hourly GBP Spot Index was at -9.50436 (Neutral) at 0600 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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