FxWirePro: EUR/GBP Struggles at 0.79 Handle After Gap up Open, Go Long on Break Above

FxWirePro: EUR/GBP Struggles at 0.79 Handle After Gap up Open, Go Long on Break Above

6 June 2016, 09:06
Roberto Jacobs
0
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FxWirePro: EUR/GBP Struggles at 0.79 Handle After Gap up Open, Go Long on Break Above

  • Pound sold-off as latest 'Brexit' polls suggests rising possibilities of the UK voting to leave the EU on June 23 EU referendum. 
  • EUR/GBP saw a gap up open and extended upside to hit session highs a four-week high of 0.7905. 
  • Pair was however rejected at highs, slips below 0.79 handle to currently trade around 0.7886 levels. 
  • Momentum studies are bullish, RSI, Stochastics and MACD indicate upside. 
  • 0.7906 is stiff resistance which is 61.8% Fib retrace of 0.8117 (Apr 7th high) to 0.7565 (May 25th low). 
  • Break above finds next hurdles at 0.7927 (weekly 200 MA), 0.7947 (double top May 4th and Apr 24th) and then 0.80 (78.6% Fib). 
  • On the downside, pair remains well supported above 50-DMA 0.7845 and 50% Fib at 0.7840.


Recommendation: Go long on decisive break above 0.79, SL: 0.7840, TP: 0.7945/0.80 

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