EURGBP – bulls hesitate ahead of daily cloud top
The cross eases below 0.9000 handle which was dented on today’s spike to 0.9013, showing strong hesitation at key 0.9026 barriers (daily cloud top / former highs of 10/20 Oct).
The price is holding within thick daily cloud and maintaining firm tone, favoring probes above daily cloud.
Meanwhile, some profit-taking on recent rally from 0.8791 may delay immediate bulls, with overbought slow stochastic on daily chart supporting scenario.
Broken 100SMA which holds today’s action marks initial support at 0.8947, with daily cloud base (0.8927) expected to hold corrective dips before fresh push higher.
Daily Tenkan-sen / Kijun-sen bull-cross which was formed yesterday underpins the action.
Eventual break above daily cloud would open next barrier at 0.9087 (Fibo 61.8% of 0.9306/0.8732 descend).
Res: 0.9013; 0.9026; 0.9046; 0.9087
Sup: 0.8947; 0.8927; 0.8902; 0.8882