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  • EUR/GBP continues in a consolidation range, near monthly high, within a bullish trend.
  • A close above 0.9060 should open the doors to further gains.
  • Critical support for the euro is seen in the 0.8975/0.8960 band.

The EUR/GBP pair dropped on Thursday to 0.9000 but it quickly bounced back toward 0.9050. It continued to trade in the consolidation range between 0.9000 and the 0.9070 area.

The trend points to the upside, but the euro needs a firm break above 0.9070 in order to clear the way to more gains. The upside bias stays in place as long as EUR/GBP keeps 0.8960.

The immediate support is located at 0.9000; a break lower would clear the way for a bearish correction to test the 21-day moving average and an uptrend lined. The mentioned levels, between 0.8975 and 0.8960, are the critical support that if broken, would negate the current constructive perspective.

EUR/GBP daily chart