EUR/GBP closest to multi-month highs as bulls step in

The EUR/GBP increased by 0.40% to reach 0.8740, erasing weekly losses. Bulls have space to test last week’s high of 0.8775.

With the pair clearing its losses on Mondays and Tuesdays, the EUR/GBP trades with significant gains in the 0.8740 region. The following goal is 0.8775, which would be a record high since May.

Fundamentally, weak UK inflation data released during the European sessions in October put the GBP under intense selling pressure, which helped the cross bulls gain ground.

On the daily chart, the EUR/GBP holds a bullish technical bias as the buyers gather momentum and seize control in the short term.

Evaluating the broader scale technical outlook, the pair now is above the 20,100,200-day Simple Moving Average (SMA), suggesting that the bulls are also firmly in control of the larger time frames.