Long EUR/GBP dips, target 0.90 | December 4, 2018

EUR/GPB is extending break above major trendline resistance at 0.89 level.

Brexit uncertainties continue to dent sentiment surrounding the British Pound.

While on the other side, falling Italy-German yield spread favors upside in the EUR.

Technical indicators also support upside in the pair. Momentum strongly higher.

Break above 61.8% Fib has raised scope for test of 78.6% Fib at 0.90 mark.

We see weakness on retrace below 0.89 support. Violation at 200-DMA negates bullish bias.

Support levels - 0.89 (5-DMA and trendline ), 0.8877 (50% Fib), 0.8835 ( 200-DMA )

Resistance levels - 0.8958 (July 20 high), 0.90 (78.6% Fib)

Good to go long on dips, SL: 0.89, TP: 0.8955/ 0.90