FxWirePro: EUR/GBP trades rangebound, caution ahead of UK election

• EUR/GBP halts downside, trades in an extremely narrow range as Britons head to polls later today.
   
• UK election will shape up next direction for the pound in the coming months.
   
• Should the UK election fails to deliver any winner and results in a hung parliament, pound is likely to see major impact.
   
• On the other side, a Conservatives’ victory could provide the much-needed impetus to pound.
   
• Brexit negotiations and the possibility of ‘Hard Brexit’ still to keep pressure on the pound.
   
• From a longer term perspective, dips in the pair could be used as buying opportunities.
   
• Technically, on the daily charts, the pair is trading with a neutral to slightly bearish bias.
   
• Stochs have rolled over from overbought levels and MACD is on the verge of a bearish crossover on signal line.
   
• Strong support is seen at 0.8652 (converged 20-DMA and 38.2% Fibo 0.92253 to 0.82970 fall).
   
• Break below will see test of 200-DMA at 0.8602 and then 100-DMA at 0.8564.
   
• On the flipside, we see scope for upside only on break above 50% Fib at 0.8761.

Support levels - 0.8652 (20-DMA and 38.2% Fibo 0.92253 to 0.82970 fall), 0.8602 (200-DMA), 0.8564 (100-DMA)

Resistance levels - 0.87, 0.8716 (5-DMA), 0.8761 (50% Fib)

Recommendation: Short break below 0.8650, SL: 0.8720, TP: 0.86/ 0.8565/ 0.8525

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -48.4692 (Neutral), while Hourly GBP Spot Index was at -19.6918 (Neutral) at 0500 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.