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EUR/GBP Price Analysis: Jumps to fresh 2-month tops, further beyond 0.90 mark

  • EUR/GBP scaled higher for the third straight day and broke through the 0.9000 hurdle.
  • The set-up still favours bulls and supports prospects for a move towards 0.9100 mark.

The EUR/GBP cross gained some positive traction for the third consecutive session on Friday and broke out of the previous day's trading range. The momentum lifted the cross to fresh two-month tops, further beyond the key 0.9000 psychological mark.

The mentioned level coincided with a resistance marked by 38.2% Fibonacci level of the 0.9500-0.8671 downfall. A convincing breakthrough might have already set the stage for an extension of the recent recovery move from the 0.8670 strong horizontal support.

Meanwhile, technical indicators on the daily chart maintained their bullish bias and are still far from being in the overbought territory. This reinforces the constructive outlook and supports prospects for a further near-term appreciating move.

The cross might now aim to test an intermediate resistance near the 0.9060-65 region before extending the momentum further towards the 50% Fibo. level, around the 0.9100 round-figure mark.

On the flip side, the 0.9000 mark (38.2% Fibo. level) now seems to protect the immediate downside. Any subsequent fall might still be seen as a buying opportunity and should help limit the downside near the 0.8955 horizontal support.

EUR/GBP daily chart

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