EUR/GBP hovering around 0.8500, at 2-week highs

EUR/GBP rose further during the American session and climbed momentarily above 0.8500. The pair peaked at 0.8510, hitting the highest level since December 8 and then pulled back. A weak pound across the board pushed the pair to the upside. 

It was trading at 0.8495, up 55 pips for the day, on its way to the fourth daily gain in a row. So far, it is having the best weekly performance in two months. 

Above the 20-SMA

For the first time since early November price is consolidating above the 20-day moving average (0.8430/40). The short-term outlook favors the upside. The pair could be on its way to test December highs that lie at 0.8575. 

The bullish outlook is likely to remain intact as long as EUR/GBP holds above a short-term uptrend line that currently stands at 0.8420. Below that line, strong support levels are seen above 0.8350, followed by December lows that lie at 0.8305.