The EUR/GBP pair climbed for a second consecutive day during a holiday-thinned session on Wednesday, reaching levels above 0.8730. After rebounding from mid-term lows near 0.8700, the pair tested weekly highs around 0.8740 at the time of writing.
The euro continues to outperform the pound amid a moderately cautious market, despite a lack of significant fundamental catalysts. From a broader perspective, EUR/GBP remains roughly 0.7% below mid-December highs but is set to finish the year with a gain of about 5.5%.
Technical outlook: Resistance around 0.8740 likely to challenge bulls
On the 4-hour chart, EUR/GBP trades at 0.8735, showing little daily movement. The Moving Average Convergence Divergence (MACD) has turned positive around the zero line, signaling strengthening bullish momentum. The Relative Strength Index (RSI) sits at 57, above the 50 midline, indicating improving upside pressure.
Immediate resistance aligns with last Monday’s high at 0.8739, which may test the pair’s recovery strength. Further targets include the December 19 high at 0.8773 and the key resistance zone near 0.8800, corresponding to highs from December 2, 16, and 17.
Support is observed at Tuesday’s low of 0.8706, with additional support levels in the mid-October range between 0.8655 and 0.8665.
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