FxWirePro: EUR/GBP finds stiff resistance at 0.8771, break above could see further upside

EUR/GBP chart on Trading View used for analysis

• EUR/GBP is extending correction for the 2nd straight session. 
   
• The pair has bounced off 78.6% Fib support and is trading 0.11% higher on the day.
   
• Price has broken above 5-DMA resistance and is currently struggling to break above 0.8771 (2H 55-EMA and 1H 110-EMA).
   
• Break above 0.8771 could see extension of upside, scope for test of 1H 200 SMA and 61.8% Fib at 0.88.
   
• Major trend in the pair still remains bearish and break below 78.6% Fib will see drag lower.
   
• Next major support below 78.6% Fib lies at 88.6% Fib at 0.8675. 
   
• While on the flipside, close above 5-DMA could see upside till 61.8% Fib at 0.88 level.

Support levels - 0.8754 (5-DMA), 0.8722 (78.6% Fib), 0.87, 0.8675 (88.6% Fib)

Resistance levels - 0.8803 (61.8% Fib and 1H 200 SMA), 0.8835 (200-DMA) 

Recommendation: Stay long on breakout at 0.8771, target 0.88.

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.