EUR/GBP approaches multi-month highs as bulls step in

The EUR/GBP rose to 0.8740, seeing 0.40% gains, clearing weekly losses.
Bulls have room to test the 0.8775 high, struck last week.
The cross trades above its main SMAs.

Patricio Martín FXStreet

The EUR/GBP trades with strong gains around the 0.8740 area with the pair clearing Mondays and Tuesdays' losses. The next target stands at 0.8775, which would set a high since May. On the fundamental side, soft inflation figures from October from the UK reported during the European sessions made the GBP face severe selling pressure which allowed the cross bulls to gain ground.

On the daily chart, the EUR/GBP holds a bullish technical bias as the buyers gather momentum and seize control in the short term. The Relative Strength Index (RSI) shows an upward trend above its midline, while the Moving Average Convergence (MACD) presents stagnant red bars. On the four-hour chart, indicators rose near overbought conditions, so traders should not take a slight technical correction off the table to consolidate losses.

Evaluating the broader scale technical outlook, the pair now is above the 20,100,200-day Simple Moving Average (SMA), suggesting that the bulls are also firmly in control of the larger time frames.

Supports: 0.8755, 0.8770,0.8780.
Resistances: 0.8730, 0.8710 (20-day SMA),0.8700.

EUR/GBP daily chart

EUR/GBP

Overview
Today last price	0.8739
Today Daily Change	0.0034
Today Daily Change %	0.39
Today daily open	0.8705

Trends
Daily SMA20	0.8708
Daily SMA50	0.8666
Daily SMA100	0.8624
Daily SMA200	0.8687

Levels
Previous Daily High	0.8731
Previous Daily Low	0.8689
Previous Weekly High	0.8756
Previous Weekly Low	0.865
Previous Monthly High	0.8754
Previous Monthly Low	0.8616
Daily Fibonacci 38.2%	0.8705
Daily Fibonacci 61.8%	0.8715
Daily Pivot Point S1	0.8686
Daily Pivot Point S2	0.8666
Daily Pivot Point S3	0.8644
Daily Pivot Point R1	0.8728
Daily Pivot Point R2	0.875
Daily Pivot Point R3	0.877

Author

Patricio Martín

FXStreet

Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.

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