EUR/GBP jumps to fresh session tops, further beyond mid-0.8500s


  • EUR/GBP attracted some dip-buying near the 0.8535 horizontal support on Monday.
  • Brexit/COVID-19 jitters weighed on the sterling and remained supportive of the move.
  • Absent relevant market-moving economic data warrants caution for aggressive bulls.

The EUR/GBP cross caught aggressive bids during the early European session and shot to fresh daily tops, around the 0.8560-65 region in the last hour.

The cross once again found decent support and attracted some buying near the 0.8535 horizontal zone on the first day of a new trading week. The uptick assisted the EUR/GBP cross to stall last week's sharp retracement slide from the 0.8615-20 region, or three-week tops and recover a part of its heavy losses recorded on Friday.

Renewed Brexit concerns, along with COVID-19 woes acted as a headwind for the British pound and extended some support to the EUR/GBP cross. In fact, Brussels and London were locked in a dispute over the size of the UK’s Brexit bill. Adding to this, the UK last week reported the highest number of infections in over five months.

On the other hand, the shared currency found some support from a subdued US dollar price action. This, in turn, was seen as another factor that provided an additional boost to the EUR/GBP cross. It, however, remains to be seen if bulls are able to capitalize on the momentum or the cross meets with some fresh supply at higher levels.

There isn't any major market-moving economic data due for release on Monday, either from the Eurozone or the UK. This further makes it prudent to wait for some strong follow-through buying before confirming that the EUR/GBP cross has formed a strong base near the 0.8535 area and positioning for any further appreciating move.

Technical levels to watch

EUR/GBP

Overview
Today last price 0.856
Today Daily Change 0.0018
Today Daily Change % 0.21
Today daily open 0.8542
 
Trends
Daily SMA20 0.8575
Daily SMA50 0.8602
Daily SMA100 0.861
Daily SMA200 0.8788
 
Levels
Previous Daily High 0.8597
Previous Daily Low 0.8539
Previous Weekly High 0.8618
Previous Weekly Low 0.8536
Previous Monthly High 0.8646
Previous Monthly Low 0.8531
Daily Fibonacci 38.2% 0.8561
Daily Fibonacci 61.8% 0.8575
Daily Pivot Point S1 0.8522
Daily Pivot Point S2 0.8502
Daily Pivot Point S3 0.8464
Daily Pivot Point R1 0.858
Daily Pivot Point R2 0.8617
Daily Pivot Point R3 0.8637

 

 

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