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.