General Analysis
The EUR/GBP currency pair continues to trade in an upward trend but the price broke through the resistance level 0.8700 and successfully fixed above it. Afterwards the price formed a reverse testing of the level 0.8700, which itself acts as a confirmation for further bullish movement on the EUR/GBP pair.
The moving average (14) also confirms the presence of an uptrend. Furthermore, yesterday the price pushed up from this moving average, thereby giving us one more signal that the bullish direction of the movement still overcomes the bearish one.
However, the chart of the Stochastic indicator shows a decrease, but at the moment both signal lines of the indicator are in the neutral zone so we cannot bet much on this signal.
We can expect significant movement today since today there is going to be published some key information from the eurozone and Britain as well. We are going to see The Consumer Price Index today from the eurozone, which is a key way to measure changes in purchasing trends and inflation. The diction of the Bank of England is also going to be published today.
We recommend opening long positions for the EUR/GBP currency pair with target profit-taking points at 0.8830 and 0.8850. Stop-Loss orders can be set up 20-30 pips lower than the entry point.
