EURGBP – Fresh strength eyes key daily cloud top barrier at 0.8887
|EURGBP
The cross surged to nine-week high at 0.8850 today, on broadly weaker pound. The rally was also supported by technicals, completion of cup-and-holder pattern on the daily chart. The price action is showing strong scope for extension above thick daily cloud (spanned between 0.8549 and 0.8887), as fresh gains approached cloud's top at 0.8887 (also 50% retracement of larger 0.9472/0.8302 descend, reinforced by weekly Kijun-sen line). Sustained break above this strong barrier would trigger fresh acceleration towards 0.9000 zone (psychological barrier / near Fibo 61.8% retracement), as the pound stays under increased pressure on Brexit concerns. Meantime, dips from session low are so far holding above initial support at 0.8749 (broken Fibo 38.2% of 0.9472/0.8302), which should ideally contain corrective actions and guard pivot at 0.8664 (rising daily Tenkan-sen line).
Res: 0.8850; 0.8887; 0.8936; 0.9025
Sup: 0.8749; 0.8692; 0.8664; 0.8590
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