EUR/GBP rises further to test 20-DMA, near 0.7970

The offered tone surrounding the pound keeps growing bigger as we head into the European morning, sending EUR/GBP to fresh session highs in the upper band of 0.79 handle.

EUR/GBP faces stiff resistance around 20-DMA

Currently, the EUR/GBP pair trades 0.29% higher at 0.7968, hovering close to fresh session highs at 0.7974. EUR/GBP’s recovery gained traction over the last hour after the pound fell further in the red amid a lack of demand for risk currencies such as the GBP as the oil price slump curbed the risk appetite this Monday.

On the other hand, the price action surrounding EUR/USD provide keeps the upside restricted in the cross. The EUR/USD pair traded directionless around 1.1285 levels almost since mid-Asia, awaiting fresh incentives from the European session.

EUR/GBP Technical Levels

To the upside, the next resistance is located at 0.8000 (10-DMA/ round number), above which it could extend gains to 0.8033/50 (Apr 12 High). To the downside immediate support might be located at 0.7925 (Apr 13 w) below that at 0.7910/00 (daily S3/ Apr 1 Low).