The EUR/GBP pair edged sharply higher over the last three months surging more than 6%. Currently, the euro is creating the third green month in a row against the British pound and early this morning posted an eight-month high, few pips below 0.8950. The price had an upward movement after the bounce off the 0.8310 strong support level which overlaps with the 100-day SMA.
On the daily timeframe, yesterday, the price jumped above the 0.8880 strong critical level where it had several failed attempts in the previous months. The next target to watch is within the 0.9025 – 0.9050 resistance area. The technical indicators had an aggressive buying interest during Tuesday’s period while the three simple moving averages (50, 100 and 200) are rising. The MACD oscillator holds above both its trigger and zero lines while it recorded a bullish crossover. The RSI indicator is trying to insert into the overbought zone as it is developing near the 70 level.