EUR/GBP breaks 100-DMA at 0.8626, good to go long on dips

Fundamental factors:

Pound Sterling underperforms in the Asian session as ‘hard-Brexit’ induced worries resurfaced.
Focus now shifts towards release ahead of the Eurozone Sentix Investor Confidence and unemployment rate numbers.
German trade balance data slightly better than expected, euro could garner support.

Technical Analysis:

EUR/GBP bounces of 20-DMA at 0.8454 on Tuesday's trade (last week).
Upside gathers steam as we head into European session.
The pair has breached major trendline resistance and has taken out 100-DMA at 0.8626.
Momentum studies are bullish, we see scope for test of 0.8765 (50% Fib of 0.9225 to 0.8304 fall).
Bullish invalidation only below 20-DMA currently at 0.8481.

TIME TREND INDEX OB/OS INDEX

1H Bullish Overbought
4H Bullish Overbought
1D Bullish Neutral, Bias higher
1W Bullish Neutral , Bias higher

Support levels - 0.86, 0.8551 (5-DMA), 0.8501 (78.6% Fib)

Resistance levels - 0.8656 (61.8% Fib), 0.87, 0.8765 (50% Fib)

Good to go long on dips around 0.8625, SL: 0.8550, TP: 0.8660/ 0.87/ 0.8765

Kommentera:

Targets almost hit.

EUR/GBP hit 0.8763 before edging lower.

Momentum still bullish. Techs on weekly charts support gains.

Break above 0.8765 raises scope for test of 0.8873 (61.8% Fib).