EUR/GBP pulled up to key resistance by euro demand ahead if Jackson Hole

Currently, EUR/GBP is trading at 0.9159, up 0.29% on the day, having posted a daily high at 0.9165 and low at 0.9111.

EUR/GBP has rallied towards a key area of resistance, extending the break and move above the 0.8880 level. EUR/USD has been the driver with the euro on the rampage while the dollar and US yields take a knock in the US session. 

GBP/USD has managed to get up onto the 1.29 handle but lacks the same level of momentum as the euro ahead of this week's Jackson Hole of where Mario Draghi of the European Central Bank will be speaking and likely not wanting to sound too hawkish considering the strength in the euro. 

"In September, the ECB is likely to announce an extension of its asset purchases into next year at a slower pace (we suspect 30 bln euros a month down from 60 bln presently and 80 bln initially)," explained analysts at Brown Brothers Harriman, adding, " However, as the record of the July meeting showed, officials are sensitive to the market prematurely tightening financial conditions."

EUR/GBP levels

Analysts at Commerzbank explained that EUR/GBP’s advance remains intact with the 78.6% Fibonacci retracement at 0.9170 still being in focus. "The currency pair will stay immediately bid while it remains above the 0.9092 near-term uptrend line. Below it lies the four-month support line at 0.8932. The up move remains intact above here. 

Where are we wrong? Below the 0.8743 14th July low would trigger losses to the 200 day moving average at .8643. Short-Term Trend (1-3 weeks): Bid above uptrend. Long-term trend (1-3 months): Neutral to positive. Above 0.9170 targets .9082/85, 0.9140 then 0.9240," explained the analysts.