EUR/GBP extends its sharp rally for the fifth consecutive session

EUR/GBP remains firmly in an upward trajectory for the fifth straight session, fueled by rising risk aversion amid the escalating trade war. The euro has gained safe haven appeal alongside the yen and Swiss franc, as the dollar continues to weaken.

Wednesday saw a fresh surge, with the pair gaining nearly 1% by early US trading and reaching its highest level since early January 2024. Over the past five sessions, the pair has rallied nearly 4%.

Bulls cleared key resistance levels at 0.8600 (50% retracement of 0.8978/0.8225) and 0.8624/44 (former highs from August 9 and April 23, 2023), reinforcing the bullish outlook.

Focus now turns to the 0.8689 Fibonacci level (61.8% retracement), though a pause for consolidation is likely, given the overbought conditions on the daily chart.

Any pullbacks are expected to remain limited, as the overall fundamental backdrop continues to support the euro. Strong support lies at 0.8600 and 0.8550, which should ideally contain any dips and provide fresh buying opportunities.

Res: 0.8689; 0.8714; 0.8765; 0.8800
Sup: 0.8624; 0.8600; 0.8550; 0.8511