EUR/GBP: Rally Loses Momentum After Fresh Three-Month High

EUR/GBP’s strong three-day rally, which saw the cross rise by 2.1%, began to lose momentum after reaching a fresh high of nearly three months on Monday (0.8596).

Overbought daily indicators suggest that partial profit-taking may occur following the steep ascent, setting the stage for a potential further upward move.

The broken 200 DMA provides initial support at 0.8558, with a more significant level at the top of the thick daily cloud at 0.8520, which should ideally contain any pullback. However, deeper declines cannot be ruled out, with expected support around the 0.8500 zone (broken 100 DMA / former top from July 1). Caution is advised if the price falls below the cloud base at 0.8466, which could sideline the bullish outlook.

Res: 0.8596; 0.8620; 0.8643; 0.8682
Sup: 0.8558; 0.8520; 0.8490; 0.8461