EUR/GPB is extending break above major trendline resistance at 0.89 level.
Brexit uncertainties continue to dent sentiment surrounding the British Pound.
While on the other side, falling Italy-German yield spread favors upside in the EUR.
Technical indicators also support upside in the pair. Momentum strongly higher.
Break above 61.8% Fib has raised scope for test of 78.6% Fib at 0.90 mark.
We see weakness on retrace below 0.89 support. Violation at 200-DMA negates bullish bias.
Support levels - 0.89 (5-DMA and trendline), 0.8877 (50% Fib), 0.8835 (200-DMA)
Resistance levels - 0.8958 (July 20 high), 0.90 (78.6% Fib)
Good to go long on dips, SL: 0.89, TP: 0.8955/ 0.90
Brexit uncertainties continue to dent sentiment surrounding the British Pound.
While on the other side, falling Italy-German yield spread favors upside in the EUR.
Technical indicators also support upside in the pair. Momentum strongly higher.
Break above 61.8% Fib has raised scope for test of 78.6% Fib at 0.90 mark.
We see weakness on retrace below 0.89 support. Violation at 200-DMA negates bullish bias.
Support levels - 0.89 (5-DMA and trendline), 0.8877 (50% Fib), 0.8835 (200-DMA)
Resistance levels - 0.8958 (July 20 high), 0.90 (78.6% Fib)
Good to go long on dips, SL: 0.89, TP: 0.8955/ 0.90