- Upbeat UK labor market and wage data, pushed EUR/GBP to a daily low of 0.7840 levels on Wednesday.
- The pair is firmer on the day and is now testing session highs in the vicinity of the key barrier at 0.7900.
- Market focus on the Bank of England rate decision and minutes release where the central bank is expected to keep rates unchanged with a unanimous vote.
- EUR/GBP upside seen pausing at the 0.79 handle. Only breaks above could see further bullishness.
- 0.7897, which is double top on Feb 11th and 29th is strong resistance for the pair, breaks above could see test of 0.7928 and then 0.7955 levels.
- On the downside, supports are aligned at 0.7823 (5-DMA), then 0.7787 (10-DMA) and further below at 0.7735 (Mar 14th lows).
- Charts indicate upside in the pair, RSI is strong at 62 with ample room to run, Stochs are biased higher and a bullish MACD line crossover on signal line seen.
Recommendation: Good to long breaks above 0.79, SL: 0.7820, TP: 0.7955/0.7975/0.80
