FxWirePro: EUR/GBP breaks major resistance at 0.8645, break above 50% Fib at 0.8761 could see further upside

• EUR/GBP trades 0.29% higher at the time of writing, holds above 0.87 handle.
   
• Price action above 200-DMA (0.8596) and daily cloud, bias higher.
   
• The pair has broken above major trendline resistance at 0.8645. Technicals studies on weekly charts also support upside.
   
• Scope for further upside on break above 0.8761 (50% Fib retrace of 0.92253 to 0.82970 fall).
   
• Data released showed slowing credit off-take, with net lending to individuals and mortgage approvals falling more-than-expected during the month of April.
   
• Risk-off environment which remains prevalent on the back of political uncertainty stemming out of the UK keeps GBP subdued.
   
• Bullish invalidation on break below 200-DMA.

Support levels - 0.8651 (38.2% Fib), 0.8596 (200-DMA), 0.8571 (20-DMA)

Resistance levels - 0.8761 (50% Fib), 0.8787 (Mar 13 high), 0.8852 (Jan 16 high)

Call update: Call update: Our previous call (http://www.econotimes.com/FxWirePro-EUR-GBP-breaks-200-DMA-at-08595-good-to-go-long-on-dips-714647) has hit all targets.

Recommendation: Good to go long on break above 0.8762, SL: 0.8650, TP: 0.8790/ 0.8850/ 0.8870

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 5.99736 (Neutral), while Hourly GBP Spot Index was at -29.8422 (Neutral) at 1040 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.