EURGBP – fresh bullish acceleration tested daily cloud base
The cross rallied strongly after disappointing Brexit news, surging through psychological 0.9000 barrier and dented strong resistance at 0.9024, provided by base of thick daily cloud.
Today’s fresh bullish acceleration signals resumption of larger uptrend from 0.8745 (27 Sep low) which was paused for 0.8992/0.8906 consolidation before bulls resumed.
Clear break above cloud base would generate fresh bullish signal and open way towards next target at 0.9092 (Fibo 61.8% of 0.9306/0.8745 (29 Aug / 27Sep descend).
Daily studies are turning into full bullish setup and are supportive for further advance.
However, hesitation at key barrier at 0.9024 cannot be ruled out as slow stochastic is re-entering overbought territory and forming bearish divergence which may delay bulls.
Broken daily Kijun-sen at 0.8974 should keep the downside protected.
Res: 0.9032; 0.9047; 0.9092; 0.9165
Sup: 0.9000; 0.8974; 0.8916; 0.8906