EUR/GBP rises to test weekly highs

EUR/GBP  broke above previous daily highs at 0.8525 and climbed to 0.8539 hitting a fresh daily high. The pair is testing weekly highs located around the 0.8540/45 area; if is break higher it would be trading at the strongest level of September.

The recent rally was boosted by a weak pound, that tumbled in the markets, as GBP/USD approached the key 1.3050 support.

Technical levels

The pair is finally moving of the 20-day moving average, that was capping the upside. The line stands at 0.8485. In order to clear the way to more gains, the euro needs to break and hold on top of 0.8540/45, above attention would turn to 0.8600.

On the opposite direction, support could be seen at 0.8525 (European session high), 0.8485 (daily low / 20-day MA) and 0.8440 (Sep 9 low).