EURGBP surges above 0.9000 as pound falls after BoE
The Euro surged above 0.9000 barrier against the pound after BoE rate hike vote of 6-2 vs expected 5-3 configuration disappointed markets and sent sterling lower.
Fresh rally came ticks ahead of target at 0.9048 (02 Nov 2016 high) and also approached 0.9069 resistance (Fibo 76.4% of 0.9305/0.8304 descend).
Completion of bullish pennant pattern on daily chart generated positive signal for bullish continuation of broader recovery from 0.8300 double-bottom, where a higher base was formed on weekly chart.
Bulls need clear break above 0.9048/69 pivots to trigger further extension higher and expose key med-term barrier at 0.9305 (07 Oct 2016 spike high).
Former top at 0.8994 (posted on 21 July) marks initial support, followed by rising Tenkan-sen (0.8966) and 10SMA (0.8955), which underpin the action and should contain dips.
Res: 0.9048; 0.9069; 0.9098; 0.9137
Sup: 0.8994; 0.8966; 0.8955; 0.8922