FxWirePro: EUR/GBP struggles at weekly 50-SMA, close above to target 0.8620 levels

• Weekly 50-SMA at 0.8502 is strong resistance and EUR/GBP has failed to close above for past 2 weeks.
   
• Stochs and RSI on the weekly charts are slightly bullishly aligned. Stochs are on the verge of a rollover from oversold levels and RSI has turned north.
   
• On the daily charts the pair has closed above 20-DMA and we have seen a 5&20 DMA bullish crossover.
   
• The pair finds strong support by triple bottom at 0.83 levels and we see major weakness only on break below.
   
• We see scope for test of 100-DMA at 0.8551. Violation there could see gains upto 0.8593 (200-DMA and then 0.86 (trendline).

Support levels - 0.8469 (5-DMA), 0.8455 (20-DMA), 0.84 (April 28 low)

Resistance levels - 0.85 (weekly 50-SMA), 0.8530 (April 25/26 high), 0.8551 (50-DMA), 0.8593 (200-DMA)

TIME  TREND INDEX  OB/OS INDEX   

1H          Bearish                Neutral      

4H          Neutral               Neutral      

1D          Bullish                 Neutral       

1W         Neutral               Neutral     

Recommendation: Good to go long on break above 0.85, SL: 0.8450, TP: 0.8550/ 0.86

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 115.808(Bullish), while Hourly GBP Spot Index was at -10.1911 (Neutral) at 0830 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.