EUR/GBP Price Analysis: Trades with modest losses below mid-0.9000s

• EUR/GBP met with some supply on Monday and eroded a part of Friday’s positive move.
• The intraday downtick found some support near the key 0.9000 resistance breakpoint.
• The set-up still favours bullish traders and supports prospects for a move to 0.9100 mark.

The EUR/GBP cross edged lower on the first day of a new trading week and eroded a part of the previous session's positive move to near three-month tops.

The intraday pullback managed to find some support ahead of the key 0.9000 psychological mark, which also marks an important resistance breakpoint. The emergence of some dip-buying near a resistance-turned-support added credence to last week's bullish breakout.

Meanwhile, technical indicators on the daily chart maintained their bullish bias and have also eased from overbought conditions on the 4-hourly chart. This, in turn, adds credence to the constructive outlook and supports prospects for further near-term gains.

Hence, a move beyond Friday's monthly swing highs, around the 0.9070 region, remains a distinct possibility. The cross seems all set to build on the recent appreciating move and aim back towards reclaiming the 0.9100 round-figure mark.

On the flip side, dips towards the 0.9000 level might continue to attract some dip-buying, which should help limit any meaningful downside for the cross. That said, some follow-through weakness below the 0.8980 might now turn the cross vulnerable to accelerate the slide towards the 0.8910 support area.

EUR/GBP 4-hourly chart

Technical levels to watch