EURGBP probe above daily cloud base generates bullish signal

Slobodan Drvenica Windsor Brokers

EURGBP

Bounce from 0.8453 (14 Feb low/200SMA) extends into the fourth day and probed above strong barrier at 0.8575 (daily Ichimoku cloud base, also near Fibo 61.8% of 0.8642/0.8453 downleg) on today's fresh extension higher.
Spike to 0.8590 (fresh two-weeks high) was so far short-lived and failing to break barriers on first attempt.
However, near-term studies are bullish and outlook of daily technicals improving that supports for renewed attempts higher.
Close above Fibo 61.8% barrier and sustain break into the cloud is needed to confirm reversal from 0.8543 and signal further upside action.
Next barrier lies at 0.8597 (Fibo 76.4%) ahead of more significant 0.8642 (06 Feb high/100SMA) and 0.8651/62 (daily Kijun-sen/cloud top) that mark next pivots.
End of the week profit-taking may further delay bulls and signal extended consolidation before fresh attempts higher. Broken daily Tenkan-sen (0.8545) offers solid support that should keep the downside protected.

Res: 0.8575; 0.8597; 0.8642; 0.8662
Sup: 0.8550; 0.8520; 0.8485; 0.8457

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

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