- EUR / GBP built on its positive intraday move and spiked to nearly two-week highs.
- The technical setup favors bullish traders and supports the prospects for additional earnings.
The crossing EUR/GBP added to its intraday gains and rose above 0.9100, hitting nearly two-week highs in the last hour.
Since the cross has shown some resistance below the 100-day SMA, the sustained move beyond a month-long downtrend channel appeared to have prompted some technical buying. The short-term bullish breakout is reinforced by the fact that the technical indicators on the daily chart have just started to gain positive momentum.
The setup may have already turned in favor of bullish traders and momentum looks strong enough to push the pair towards the monthly highs, around the 0.9160 region. Some subsequent purchases have the potential to lift the EUR / GBP cross above 0.9200, towards the 0.9220 resistance zone.
On the other hand, any pullback from higher levels could now be seen as a buying opportunity and remain capped near the 0.9100-0.9090 region. That being said, the lack of defense from the aforementioned support could make the EUR / GBP cross vulnerable to fall to return and challenge the support of the 100-day SMA, currently near the 0.9040 region, en route to the key psychological level. 0.9000.
Daily chart
Credits: Forex Street
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