- EUR/GBP met with some supply on Monday and eroded a part of Friday’s positive move.
- The intraday downtick found some support near the key 0.9000 resistance breakpoint.
- The set-up still favours bullish traders and supports prospects for a move to 0.9100 mark.
The EUR/GBP cross edged lower on the first day of a new trading week and eroded a part of the previous session’s positive move to near three-month tops.
The intraday pullback managed to find some support ahead of the key 0.9000 psychological mark, which also marks an important resistance breakpoint. The emergence of some dip-buying near a resistance-turned-support added credence to last week’s bullish breakout.
Meanwhile, technical indicators on the daily chart maintained their bullish bias and have also eased from overbought conditions on the 4-hourly chart. This, in turn, adds credence to the constructive outlook and supports prospects for further near-term gains.
Hence, a move beyond Friday’s monthly swing highs, around the 0.9070 region, remains a distinct possibility. The cross seems all set to build on the recent appreciating move and aim back towards reclaiming the 0.9100 round-figure mark.
On the flip side, dips towards the 0.9000 level might continue to attract some dip-buying, which should help limit any meaningful downside for the cross. That said, some follow-through weakness below the 0.8980 might now turn the cross vulnerable to accelerate the slide towards the 0.8910 support area.
EUR/GBP 4-hourly chart
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Technical levels to watch
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