- EUR/GBP gains positive traction for the second consecutive session on Wednesday.
- The emergence of fresh buying around the euro remained supportive of the uptick.
- A subdued GBP price action did little to influence as investors await Brexit updates.
The shared currency picked up pace during the early European session and pushed the EUR/GBP cross further beyond mid-0.9000s, back closer to weekly tops.
The cross built on the previous day’s goodish bounce from the key 0.9000 psychological mark and gained some follow-through traction for the second consecutive session on Thursday. The uptick was exclusively sponsored by the common currency’s relative outperformance against its British counterpart.
The FOMC minutes-led strong USD rebound from the lowest level since April 2018 lacked any strong follow-through amid the uncertainty over the next round of the US fiscal stimulus measures. This, in turn, assisted the EUR/USD major to edge higher during the first half of the trading action on Wednesday.
On the other hand, the sterling was seen consolidating in a range as investors eagerly awaited updates on the latest round of Brexit negotiations. A subdued GBP price moves further contributed to the EUR/GBP pair’s positive move amid absence relevant market-moving economic releases, either from the Eurozone or the UK.
Meanwhile, bullish traders are likely to wait for a sustained move beyond the 0.9070 horizontal resistance before positioning for any further appreciating move. The cross might then aim to reclaim the 0.9100 mark, above which the momentum could further get extended towards July monthly swing highs, around the 0.9145-50 region.
Technical levels to watch
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