EUR/GBP continues scaling fresh yearly tops, now eyeing 0.91 mark

The EUR/GBP cross continued scaling higher through early NA session and is now placed at fresh yearly tops, around the 0.9080 region.

After Friday's brief pause, the cross attracted some fresh buying interest and advanced for the second consecutive day on Tuesday amid some renewed selling pressure around the British Pound. Against the backdrop of last week's perceived dovish BoE decision, renewed Brexit worries drove the Sterling lower across the board.

Meanwhile, growing expectations of a possible ECB tapering at the September meeting continues to underpin the shared currency. Hence, the post-NFP recovery witnessed around the EUR/USD major further collaborated to the pair's strong up-move, to the highest level since Oct. 2016. 

Even from a technical perspective, sustained break through Nov. 2016 highs resistance near mid-0.9000s points to a fresh bullish breakout. Hence, the cross remains poised to extend its appreciating move and aim towards retesting Oct. 2016 swing high resistance, beyond mid-0.9200s in the near-term. 

   •  EUR/GBP above 0.9082/85 could target 0.9170 – Commerzbank

Technical levels to watch

The ongoing momentum seems strong enough to continue lifting the cross even beyond the 0.9100 handle towards 0.9130-40 strong resistance en-route the 0.9200 round figure mark. On the flip side, mid-0.9000s now becomes an immediate support to defend, which if broken could drag the cross back towards the key 0.90 psychological mark, with some intermediate support near 0.9025 level.