- EUR/GBP gained some strong traction on Monday and rallied to near two-week tops.
- Any subsequent strength is likely to confront stiff resistance near the 0.9020 region.
The intense selling pressure around the British pound pushed the EUR/GBP cross to near two-week tops in the last hour, with bulls now eyeing to reclaim the key 0.9000 psychological mark.
Any subsequent positive move is likely to confront a stiff resistance near a short-term descending trend-line, around the 0.9020 region. The mentioned level coincides with a three-month-old ascending trend-line support breakpoint and 50-SMA on the 4-hourly chart, which should now act as a key pivotal point for short-term traders.
Meanwhile, technical indicators have been gaining positive traction on hourly charts and also recovered from the negative territory on the daily chart. The set-up favours bullish traders and supports prospects for an eventual breakthrough the said confluence barrier amid the heavily offered tone surrounding the British pound.
On the flip side, immediate support is now pegged near the 0.8960 horizontal zone. Any further slide might still be seen as a buying opportunity and remain limited. The cross is more likely to find decent support just ahead of the 0.8900 round-figure mark, which should now act as a strong base for the major.
That said, some follow-through selling might negate any near-term bullish bias and turn the cross vulnerable to accelerate the slide back towards the 0.8865-60 horizontal support.
EUR/GBP daily chart
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Technical levels to watch
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