- EUR/GBP gains some strong positive traction on the first day of a new trading week.
- Slightly overbought conditions on the 1-hourly charts warrant some caution for bulls.
- Any further move up is likely to remain capped near the 0.9000 mark (200-hour SMA).
The EUR/GBP cross continued scaling higher through the mid-European session and refreshed daily tops in the last hour. Bulls might now aim for a move beyond 200-hour SMA, which coincides with the 0.9000 psychological mark and should act as a key pivotal point for short-term traders.
Meanwhile, technical indicators on 4-hourly/daily charts have just started moving back into the bullish territory and support prospects for additional gains. However, oscillators on the 1-hourly chart are already flashing overbought conditions and warrant some caution for bulls.
Hence, any subsequent move beyond the 0.9000 mark is more likely to remain limited, rather fizzle out near the 0.9015-25 congestion zone. That said, some follow-through buying has the potential to lift the cross beyond the 0.9055-60 supply zone, towards reclaiming the 0.9100 mark.
On the flip side, any meaningful pullback below the 0.8980 level now seems to find decent support near mid-0.8900s. Failure to defend the mentioned support might turn the cross vulnerable to extend its recent corrective slide from multi-month tops, around the 0.9175 level set on June 29.
EUR/GBP 1-hourly chart
-637302403965810874.png)
Technical levels to watch
Share
