“¢ The EUR/GBP cross built on its strong bullish momentum witnessed over the past few weeks and rallied to over three-month tops on Wednesday, levels beyond the 0.8800 handle.
“¢ After the overnight turnaround from multi-day lows, a sustained move beyond 200-day SMA was seen as a key trigger for bullish traders and fueling the ongoing positive momentum.
The mentioned resistance coincides with 50% Fibonacci retracement level of the 0.9119-0.8471 downfall and should now act as a key pivotal point for the pair’s near-term trajectory. Given that the cross has found acceptance above the mentioned confluence region, Wednesday’s up-move marks a fresh near-term bullish break out amid mounting Brexit/UK political uncertainty.
Meanwhile, technical indicators on 4-hourly/daily charts have started moving into overbought territory and warrant some near-term consolidation before traders start positioning for the next leg of an appreciating move. The cross now seems all set to aim towards testing 61.8% Fibo. level, around the 0.8855-60 region, before eventually darting to reclaiming the 0.8900 handle.
EUR/GBP daily chart
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