“¢ The EUR/GBP cross finally broke out of its recent consolidative trading range and jumped to fresh four-month tops, above mid-0.8800s in the last hour.
“¢ Given the recent breakthrough an important confluence hurdle, the latest leg of a positive move now sets the stage for a further near-term appreciating move.
Sustained move beyond the 0.8870 region – marking 61.8% Fibonacci retracement level of the 0.9119-0.8471 downfall, will reinforce the constructive set-up and lift the cross towards reclaiming the 0.8900 handle en-route the 0.8925-30 supply zone.
Meanwhile, technical indicators on hourly/daily charts are yet to cool down from near-term overbought conditions and might now turn out to be the only factor holding investors from placing any aggressive bullish bets or prompt some long-unwinding trade.
However, any meaningful pullback might attract some fresh buying near the mentioned confluence resistance break-point now turned support, around the 0.8785 region – comprising of 50% Fibonacci retracement level and the very important 200-day SMA.
EUR/GBP daily chart
-636948929061170101.png)
Share
