EUR/GBP Price Analysis: Clings to modest gains below 0.90, EU-UK trade meeting eyed
|- EUR/GBP gained some positive traction for the fifth straight session on Monday.
- The cross struggled to preserve early gains beyond 0.90 mark, to two-week tops.
- The near-term set-up supports prospects for the emergence of some dip-buying.
The EUR/GBP cross continued with its struggle to sustain above the key 0.9000 psychological mark and witnessed an intraday pullback of around 40-50 pips from two-week tops on Monday. Despite the downtick, the cross has managed to hold with modest daily gains for the fifth consecutive session and the downside remained limited ahead of the high-level EU-UK Brexit meeting.
Meanwhile, bullish oscillators on 4-hourly/daily charts support prospects for a further near-term appreciating move. Hence, any meaningful dips might still be seen as a buying opportunity. In the meantime, immediate support is pegged near the 0.8960 level, below which the cross is likely to accelerate the slide towards the 0.8925 intermediate support en-route the 0.8900 mark.
On the flip side, the 0.9000 mark, followed by the daily high near the 0.9025 level might act as immediate resistance, which if cleared might be seen as a fresh trigger for bullish traders. The cross might then could easily surpass late May swing highs, around the 0.9055 region, and aim towards reclaiming the 0.9100 mark with some intermediate resistance near the 0.9080 level.
EUR/GBP 4-hourly chart
Technical levels to watch
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