- On bids for the fourth consecutive session amid renewed Brexit pessimism.
- Sustained move beyond 0.9000 mark needed to confirm additional gains.
The EUR/GBP cross built on its recent bounce from levels just below the very important 200-day SMA, or four-month lows, and traded with a mild positive bias for the fourth consecutive session on Wednesday.
The positive momentum lifted the pair to one-month tops on Tuesday, though bulls struggled to extend the momentum further beyond 100-day SMA and witnessed some support near the key 0.9000 psychological mark.
The mentioned handle nears a resistance marked by 38.2% Fibonacci level of the 0.8489-0.9327 strong positive move, which if cleared might be seen as a key trigger for bullish traders amid persistent Brexit uncertainties.
Meanwhile, technical indicators on the daily chart have just started gaining positive traction and have also eased from overbought conditions on hourly charts, supporting prospects for a further near-term appreciating move.
However, traders are likely to wait for a sustained move beyond the mentioned barrier before positioning for a move beyond the 0.9030-35 intermediate resistance towards testing the next major hurdle near the 0.9085-90 region.
On the flip side, any meaningful pullback now seems to find some support near the 0.8930 region ahead of 50% Fibo. level near the 0.8900 handle, which if broken might negate any near-term positive bias and trigger a fresh leg of a move lower.
Below the said support, the cross is likely to accelerate the fall further towards mid-0.8800s before eventually sliding back towards testing sub-0.8800 level, nearing 61.8% Fibo. level.
EUR/GBP 4-hourly chart
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