EUR/GBP Price Analysis: Bulls challenge a multi-month-old descending trend-line resistance

• EUR/GBP gained strong follow-through traction for the second consecutive session on Friday.
• The set-up supports prospects for an eventual breakthrough a descending trend-line resistance.
• The emergence of some dip-buying near the 0.9140 region should help limit any meaningful slide.

The EUR/GBP cross added to the previous day’s strong positive move and continued gaining traction for the second consecutive session on Friday. The momentum pushed the cross to the highest level since late September, around the 0.9175-80 region during the early European session.

The European Commission president Ursula von der Leyen reportedly told EU leaders that the probability of no-deal is higher than that of a deal. This, in turn, prompted some aggressive selling around the British pound and turned out to be a key factor driving the EUR/GBP cross higher.

From a technical perspective, the EUR/GBP cross has now moved closer to a descending trend-line. The said barrier extends from multi-year tops, around the key 0.9500 psychological mark touched in March, which if cleared decisively will be seen as a fresh trigger for bullish traders.

Meanwhile, technical indicators on the daily chart have been gaining positive momentum and are still far from being in the overbought territory. The set-up supports prospects for an eventual breakthrough the trend-line resistance and an extension of the ongoing strong bullish move.

Hence, any pullback towards the previous monthly swing highs, around the 0.9140 region, might now be seen as a buying opportunity. This should help limit the downside near the 0.9100 round-figure mark, which should now act as a strong near-term base for the EUR/GBP cross.

EUR/GBP daily chart

Technical levels to watch