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  • The pound continues to outperform, the biggest gainer among majors.
  • EUR/GBP set to test uptrend line around support at 0.9000.

The EUR/GBP pair resumed the decline after a pause on Wednesday. It bottomed at 0.9015 and rebounded. The recovery was capped by 0.9050.

In the very short-term, technical indicators favour the bearish scenario but EUR/GBP continues to trade above an uptrend line. On Thursday it dropped below the 20-day moving average and is appears to be ready for a test of the 0.9000 support area.

The 0.9000 is not only a round number and a horizontal support, but is also where the uptrend from May stands. A break lower would negate the bullish bias, leaving the euro vulnerable to more losses. The first target stands at 0.8940.

If the euro holds above 0.9000 over the next days, it should rebound. Above 0.9100, it will likely gain momentum. A weekly close above 0.9130 would suggest more gains ahead, north of 0.9200.

EUR/GBP daily chart