- EUR/GBP gained some strong positive traction on Monday and surged past the 0.9100 mark.
- Bulls await some follow-through buying beyond 61.8% Fibo. level before placing fresh bets.
- Dips below the 0.9100 level could be seen as an opportunity to initiate fresh bullish positions.
The EUR/GBP cross caught some aggressive bids on the first day of a new trading week and surged past the 0.9075-85 resistance zone, marking the 50% Fibonacci level of the 0.9292-0.8861 downfall. The strong momentum pushed the cross to multi-week tops, around the 0.9135-40 region, which coincides with the 61.8% Fibo. level.
Given the recent rebound from the 0.8865-60 horizontal support, a subsequent move beyond the mentioned barrier will set the stage for a further near-term appreciating move. The constructive outlook is further reinforced by bullish technical indicators on the daily chart, which are still far from being in the overbought territory.
That said, it sill still be prudent to wait for some strong follow-through buying beyond mid-0.9100s before placing fresh bullish bets. The EUR/GBP cross might then accelerate the upward trajectory and target to reclaim the 0.9200 mark. The momentum could further get extended to September monthly swing highs, around the 0.9290 region.
On the flip side, the 0.9100 mark now seems to protect the immediate downside. This is closely followed by the 50% Fibo. level resistance breakpoint, around the 0.9085-75 region, which should now act as a strong base for the EUR/GBP cross. That said, failure to defend the mentioned support levels might prompt some technical selling.
The corrective slide could then extended towards the 38.2% Fibo. level support, around the 0.9030-25 region. Sustained weakness below will negate the near-term bullish bias and accelerate the fall back towards key 0.9000 psychological mark en-route the 0.8985-80 horizontal support and the 23.6% Fibo. level, around the 0.8965 region.
EUR/GBP daily chart
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Technical levels to watch
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