EUR/GBP breaks above 0.9050 and points toward 2017 highs

EUR/GBP bottomed near 0.9000 but since the beginning of the American session, it has been rising contently. The pair broke above the 0.9045 resistance and climbed to 0.9061, reaching the highest level in two days. 

Back on Tuesday, EUR/GBP rallied to 0.9086, the highest level since October 2016. Now it is headed toward the highest daily close of the year. As long as the euro holds above 0.9050 the intraday tone is likely to favor the upside. 

A weak pound boosted the pair to the upside during the last hours. The currency was affected by risk aversion. Since the Brexit referendum, the Pound has been more sensitive to declines in the equity market than the euro. 

In Wall Street, the Dow Jones is falling 0.70% at 21,898 points, at the lowest in 10 days. European markets finished all in red. The FTSE 100 lost 1.44%, while the Dax ended with a decline of 1.15%. 

Technical levels 

To the upside, resistance levels might be located at 0.9060 (Aug 7 high), 0.9100 (psychological) and 0.9140 (Oct 11 high). On the flip side, support could be seen at 0.9045/50 (Aug 3 high / European session high), 0.9000/05 (Aug 10 low) and 0.8985 (Aug 2 high).