EUR/GBP Price Analysis: Jumps to 3-month tops, inching closer to mid-0.9100s


  • EUR/GBP gains strong traction for the second straight session on Monday.
  • Overbought conditions on hourly charts warrant caution caution for bulls. 
  • The set-up favours a move to 61.8% Fibo. level, around the 0.9280 level.

The EUR/GBP cross added to the previous session's strong momentum and shot to over three-month tops, around the 0.9135 region during the early European session on Monday.

Friday's sustained move beyond the 0.9075-80 region confirmed a bullish breakthrough a one-week-old trading range. A subsequent strength beyond the 0.9100 mark on Monday reaffirmed the breakout and was seen as a key trigger for bullish traders.

This comes on the back of last week's dip-buying near a previous strong resistance breakpoint, turned support, near the key 0.9000 psychological mark. This, in turn, supports prospects for a further near-term appreciating move for the cross.

The move-up remained well supported by bullish technical indicators on the daily chart. Meanwhile, oscillators on hourly charts are already flashing overbought conditions and warrant some caution before positioning for any further gains.

Hence, it will be prudent to wait for some near-term consolidation or a modest pullback to the 0.9100 round-figure mark, which might still be seen as a buying opportunity. Monday's key focus will remain on the resumption of the UK-EU post-Brexit talks.

The cross now seems poised to extend the momentum further towards testing the 61.8% Fibonacci level of the 0.9500-0.8671 downfall, around the 0.9180 region. On the flip side, weakness below the 0.9100 mark might trigger a corrective slide to the 0.9040-35 area.

EUR/GBP daily chart

fxsoriginal

Technical levels to watch

EUR/GBP

Overview
Today last price 0.9136
Today Daily Change 0.0042
Today Daily Change % 0.46
Today daily open 0.9094
 
Trends
Daily SMA20 0.8976
Daily SMA50 0.889
Daily SMA100 0.8815
Daily SMA200 0.87
 
Levels
Previous Daily High 0.91
Previous Daily Low 0.9026
Previous Weekly High 0.91
Previous Weekly Low 0.9001
Previous Monthly High 0.9054
Previous Monthly Low 0.8691
Daily Fibonacci 38.2% 0.9072
Daily Fibonacci 61.8% 0.9054
Daily Pivot Point S1 0.9047
Daily Pivot Point S2 0.8999
Daily Pivot Point S3 0.8972
Daily Pivot Point R1 0.9121
Daily Pivot Point R2 0.9148
Daily Pivot Point R3 0.9196

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

AUD/USD consolidates, bulls eye push towards 0.7400

AUD/USD is currently trading just below Tuesday highs at 0.7369, as bulls eye a push towards the 0.7400 level. A significant improvement in global risk appetite gave AUD a boost on Tuesday and sets the currency up well for the coming Wednesday Asia session.

AUD/USD News

Gold consolidates above $1,800, hangs near four-month lows

Gold holds just above the $1,800 threshold while taking rounds close to four-month lows. The hopes of the US stimulus and recovery from the coronavirus (COVID-19) keep the gold bears hopeful. DJI30, S&P 500 closed at the record top, DXY eased.

Gold news

NZD/USD wavers around 2.5-year high below 0.7000 even as RBNZ’s Orr backs low interest rates

NZD/USD keeps the choppy trading above 0.6965, easing five pips off-late. RBNZ Governor Adrian Orr says low interest rates ensure NZD’s competitiveness. A light calendar in Asia highlights risk news for fresh impulse.

NZD/USD News

On-chain metrics spell trouble for Bitcoin, Ethereum, and XRP despite on-going bull rally

The top three cryptocurrencies are seeing massive gains over the past few days. BTC price is close to its all-time high, currently trading at $19,300. XRP had a massive 242% colossal rally in the past week. ETH also closely following BTC's step.

Read more

Black Friday 2020 Discounts!

Learn to trade with the best! Don't miss the most experienced traders and speakers in FXStreet Premium webinars. Also if you are a Premium member you can get real-time FXS Signals and receive daily market analysis with the best forex insights!

More info

Forex MAJORS

Cryptocurrencies

Signatures