EUR/GBP Price Analysis: Jumps to 2-1/2-week tops, around 0.9125 region

• EUR/GBP gains some strong positive traction on Friday and rallies beyond the 0.9100 mark.
• Overbought conditions on hourly charts warrant some caution for aggressive bullish traders.
• The cross still seems poised to retest June monthly swing highs, around the 0.9175 region.

The EUR/GBP cross caught some fresh bids on the last day of the week and broke out of its two-day-old trading range. The momentum lifted the cross to 2-1/2-week tops, around the 0.9120-25 region in the last hour.

A sustained move beyond the 61.8% Fibonacci level of the 0.9176-0.8939 downfall might be seen as a fresh trigger for bullish traders and supports prospects for additional gains. The positive outlook is further reinforced by the fact that technical indicators on the daily chart maintained their bullish bias.

However, oscillators on hourly charts are already flashing overbought conditions and warrant some caution before positioning for any further appreciating move. Bulls might now take some breather and wait for a strong signal on the prospects for the breakthrough on the EU's proposed €750 billion coronavirus recovery fund.

That said, any meaningful dip might still be seen as a buying opportunity near the 0.9100 mark. The cross now seems poised to aim back towards the recent daily closing high, around the 0.9140 region. The momentum could further get extended towards June monthly swing highs, near the 0.9175 area, en-route the 0.9200 mark.

EUR/GBP daily chart

Technical levels to watch