“¢ The cross stalled last week’s sharp corrective slide from near one-year tops and managed to defend a short-term descending trend-line support, extending from mid-June.
“¢ The cross opened with a bullish gap in wake of the EU chief negotiator Michel Barnier’s Brexit comments over the weekend, opposing the UK PM Theresa May’s latest Brexit proposal.
“¢ The cross built on the positive momentum further beyond the key 0.90 psychological mark post-UK manufacturing PMI, coming in to show a larger than expected decline in August.
“¢ Meanwhile, technical indicators on the daily chart have started picking up positive momentum and thus, increase prospects for an extension of the pair’s intraday bullish move.
EUR/GBP daily chart
Spot Rate: 0.9006
Daily Low: 0.8967
Trend: Bullish
Resistance
R1: 0.9033 (R3 daily pivot-point)
R2: 0.9075 (horizontal zone)
R3: 0.9100 (round figure mark)
Support
S1: 0.8967 (current day swing low)
S2: 0.8940 (ascending trend-line support)
S3: 0.8908 (S2 daily pivot-point)
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