EUR/GBP Price Analysis: Bulls remain in full control near multi-month tops, approaching 200-DMA


  • 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

fxsoriginal

Technical levels to watch

EUR/GBP

Overview
Today last price 0.87
Today Daily Change 0.0090
Today Daily Change % 1.05
Today daily open 0.861
 
Trends
Daily SMA20 0.842
Daily SMA50 0.8469
Daily SMA100 0.8513
Daily SMA200 0.8746
 
Levels
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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