EUR/GBP technical analysis: Bulls looking to extend momentum further beyond 0.90 handle
|- The cross built on its recent move up and finds acceptance above 100-day SMA.
- The set-up remains in favour of bullish traders and a move towards 0.9100 handle.
The EUR/GBP cross gained some follow-through traction for the fifth consecutive session and climbed to near one-month tops on Thursday, with bulls looking to build on the momentum further beyond the key 0.90 psychological mark.
The mentioned handle coincides with a resistance marked by 38.2% Fibonacci level of the 0.8489-0.9327 strong positive move, which if cleared would be seen as a key trigger for bullish traders amid persistent Brexit-related uncertainties.
Given the recent bounce from the 61.8% Fibo. level, a follow-through strength beyond 100-day SMA further adds credence to the near-term constructive set-up and support prospects for an extension of the recent appreciating move.
Meanwhile, technical indicators on the daily chart have just started gaining positive traction and further reinforce the constructive outlook. However, oscillators on hourly charts are already flashing slightly overbought conditions and warrant some caution.
From current levels, the cross seems more likely to aim towards testing an intermediate resistance near the 0.9070-80 horizontal zone en-route the 0.9100 handle and the next major hurdle near the 0.9125-30 region (23.6% Fibo. level).
On the flip side, immediate support is now pegged near the 0.8870 region, below which the cross might witness some long-unwinding trade and accelerate the slide back towards 50% Fibo. level support near the 0.8900 round-figure mark.
EUR/GBP daily chart
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