- EUR/GBP added to last week’s strong gains and climbed to 4-1/2 month tops.
- Bulls take a brief pause near 38.2% Fibo. amid slightly overbought conditions.
The EUR/GBP cross continued scaling higher through the mid-European session on Monday and jumped to 4-1/2 month tops, around the 0.8725-30 region in the last hour.
Last week's sustained break through an important confluence resistance, around the 0.8500-0.8510 region, was seen as a key trigger for short-term bullish traders.
A subsequent strength beyond the 0.8600 round-figure mark provided an additional boost and remained supportive of the momentum for the third consecutive session.
Bulls took some breather near a resistance marked by 38.2% Fibonacci level of the 0.9398-0.8276 downfall, which is closely followed by the very important 200-day SMA.
Given that technical indicators on the daily chart are flashing slightly overbought conditions, the cross seems more likely to consolidate before the next leg of a positive move.
Meanwhile, any meaningful pullback might still be seen as a buying opportunity and help limit deeper losses near the 0.8665-60 strong horizontal support.
EUR/GBP daily chart
Technical levels to watch
|Today last price||0.87|
|Today Daily Change||0.0090|
|Today Daily Change %||1.05|
|Today daily open||0.861|
|Previous Daily High||0.8644|
|Previous Daily Low||0.8521|
|Previous Weekly High||0.8644|
|Previous Weekly Low||0.8338|
|Previous Monthly High||0.8644|
|Previous Monthly Low||0.8282|
|Daily Fibonacci 38.2%||0.8597|
|Daily Fibonacci 61.8%||0.8568|
|Daily Pivot Point S1||0.8539|
|Daily Pivot Point S2||0.8469|
|Daily Pivot Point S3||0.8417|
|Daily Pivot Point R1||0.8662|
|Daily Pivot Point R2||0.8714|
|Daily Pivot Point R3||0.8784|
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