EUR/GBP Price Analysis: Testing again levels above 0.8600

• EUR/GBP resumes upside after brief pause, back at critical resistance.
• A daily close clearly above 0.8600 could lead to further gains over the following days.
• Events ahead: FOMC statement on Wednesday, BoE and PMI on Thursday.

The EUR/GBP continued with its rally from 0.8500 and matched the September high at 0.8612. It then pulled back, showing that the cross is still not ready for a breakout and a run above the 0.8600 area. The mentioned zone has become a critical resistance and a daily close above should clear the way to more gains, probably to test July’s high at 0.8670.

A new failure at current levels should not mean a change in the bullish short-term bias. The euro will need to remain above 0.8560 (20-day moving average) to keep the momentum.

A slide back under 0.8550, should put EUR/GBP back into the 0.8500-0.8555 range, with risks again tilted to the downside, in line with the dominant medium-term trend.

EUR/GBP daily chart