Bulls await a sustained move beyond 0.9100 mark

EUR/GBP held on to its intraday gains near session tops, below the 0.9100 mark post-ECB.
The technical set-up favours of bullish traders and supports prospects for additional gains.
Dips towards mid-0.9000s might still be seen as a buying opportunity and help limit losses.

The EUR/GBP cross maintained its strong bid tone near session tops, with bulls still awaiting a sustained move beyond the 0.9100 round-figure mark post-ECB.

Given that the cross on Wednesday managed to attract some dip-buying, a subsequent move back above the 61.8% Fibonacci level of the 0.9176-0.8939 downfall supports prospects for additional gains. The positive outlook is further reinforced by the fact that oscillators on the daily chart maintained their bullish bias and have also eased from overbought conditions on the 4-hourly chart.

A sustained strength beyond the mentioned level might now be seen as a fresh trigger for bullish traders and set the stage for an extension of this week’s strong bullish momentum. The cross might then aim back towards the recent daily closing high, around the 0.9140 region, before extending the momentum further towards June monthly swing highs, around the 0.9175 area.

On the flip side, any pullback towards mid-0.9000s might continue to attract some buying and help limit the downside. That said, a convincing breakthrough, leading to some follow-through weakness below the 0.9025 region (38.2% Fibo. level) might prompt some technical selling. This might turn the cross vulnerable to weaken further towards sub-0.9000 levels (23.6% Fibo. level).