EUR/GBP Price Analysis: Breaks through a one-month old descending channel

EUR/GBP built on its goodish intraday positive move and shot to near two-week tops.
The technical set-up favours bullish traders and supports prospects for additional gains.

Haresh Menghani FXStreet

The EUR/GBP cross added to its intraday gains and climbed further beyond the 0.9100 round-figure mark, hitting near two-week tops in the last hour.

Given that the cross has been showing some resilience below 100-day SMA, sustained move beyond a one-month-old descending channel seemed to have prompted some technical buying. The near-term bullish breakout is further reinforced by the fact that technical indicators on the daily chart have just started gaining positive momentum.

The set-up might have already shifted back in favour of bullish traders and momentum seems strong enough to push the pair back towards monthly swing highs, around the 0.9160 region. Some follow-through buying has the potential to lift the EUR/GBP cross further beyond the 0.9200 round-figure mark, towards the 0.9220 resistance zone.

On the flip side, any pullback from higher levels might now be seen as a buying opportunity and remain limited near the 0.9100-0.9090 region. That said, failure to defend the mentioned support might turn the EUR/GBP cross vulnerable to slide back to challenge 100-day SMA support, currently near the 0.9040 region, en-route the key 0.9000 psychological mark.

EUR/GBP daily chart

Technical levels to watch

EUR/GBP

Overview
Today last price	0.9125
Today Daily Change	0.0033
Today Daily Change %	0.36
Today daily open	0.9092

Trends
Daily SMA20	0.9097
Daily SMA50	0.9064
Daily SMA100	0.9041
Daily SMA200	0.8881

Levels
Previous Daily High	0.9098
Previous Daily Low	0.9022
Previous Weekly High	0.9122
Previous Weekly Low	0.9007
Previous Monthly High	0.9292
Previous Monthly Low	0.8866
Daily Fibonacci 38.2%	0.9069
Daily Fibonacci 61.8%	0.9051
Daily Pivot Point S1	0.9043
Daily Pivot Point S2	0.8995
Daily Pivot Point S3	0.8968
Daily Pivot Point R1	0.9119
Daily Pivot Point R2	0.9146
Daily Pivot Point R3	0.9194

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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