“¢ The EUR/GBP cross extended its sideways consolidative price action and remained confined in a narrow trading band, above the 0.8800 handle.
“¢ Overbought conditions on the daily chart, especially after the recent upsurge of over 350-pips held investors from placing any fresh bullish bets.
The fact that the cross has managed to hold its neck above an important confluence resistance break-point – comprising of the very important 200-day SMA and 50% Fibo. level of the 0.9119-0.8472 downfall, support prospects for a further near-term appreciating move.
Sustained move beyond 61.8% Fibo. level resistance, around the 0.8870 region, will add credence to the near-term constructive outlook and set the stage for a move beyond the 0.8900 handle towards testing the next hurdle near the 0.8925-30 supply zone.
Alternatively, a pullback below the mentioned confluence support might prompt some long-unwinding trade, albeit any subsequent slide might still be seen as a buying opportunity and thus, help limit further downside near the 0.8715-10 support area (38.2% Fibo. level).
EUR/GBP daily chart
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