EUR/GBP is continuing its bounce after hitting support at 0.8300 last month
It has been quite the surge higher in EUR/GBP as the pair continues to break higher with the euro thriving in the current market environment while the pound is struggling to find any optimism amid the start of post-Brexit trade talks this week.
The pair now is a whisker away from 0.8700 and is looking to keep above the 38.2 retracement level at 0.8677. The next key test for the pair will be resistance from the 200-day MA (blue line) @ 0.8745 before revisiting the 0.8800 level again.
With the pound unable to sustain any major rallies and the euro benefiting from unwinding in carry trades as well as a deterioration in US yields, there could be more upside potential for the pair still to come if the current market environment keeps up.