EUR/GBP Price Analysis: Buyers moved in and lifted the exchange rate above 0.8900, eyeing 0.9000

• EUR/GBP climbed above 0.8900 and a one-month-old downslope trendline.
• EUR/GBP Price Analysis: Upward biased, at the brisk of cracking 0.9000.

The EUR/GBP soars past the 0.8900 psychological price level, hitting a three-week high of 0.8925. However, buyers could not lift the exchange rate towards the YTD high at 0.8978 but held to solid gains of 1.06%. At the time of writing, the EUR/GBP is trading at 0.6918.

EUR/GBP Price action

The EUR/GBP rallied on the back of fundamental news from the United States (US). The US Federal Reserve (Fed) Chair Jerome Powell commented that rates would peak higher than foreseen and added larger size hikes are back in the table.

Therefore, the EUR/GBP rallied above a one-month-old resistance trendline, which, once cleared, opened the door towards 0.8900. For a bullish continuation, the EUR/GBP must claim the February 17 high of 0.8928. Once cleared, the EUR/GBP next stop would be the YTD high at 0.8978 before testing the 0.9000 area.

As an alternate scenario, the EUR/GBP first support would be 0.8920, followed by the 0.8900 figure. Once the EUR/GBP clears that area, the cross could dive towards the 20-day EMA at 0.8854.

EUR/GBP Daily chart

EUR/GBP Technical levels