EUR/GBP hits fresh 10-month highs, inching closer to 0.92 mark

The EUR/GBP cross traded with a positive bias for the third consecutive session on Tuesday and touched a fresh 10-month high level of 0.9175 during early NA session.

The cross built on its recent bullish trajectory and has climbed around 250-pips since the beginning of this month. Today's up-move could be solely attributed to the British Pound's relative underperformance against its European counterpart, despite weaker-than-expected German ZEW survey for August. 

Even today's UK economic data, showing Public sector net borrowing decreased by £0.8 billion in July and upbeat CBI Industrial Order Expectations for August, did little to lend any support to the British Pound and stall the pair's strong upward trajectory to the highest level since Oct. 2016.

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It, however, remains to be seen if the cross is able to build on the up-move or traders would be inclined to take some profits off the table ahead of the Jackson Hole Symposium, where the ECB President Mario Draghi's could disappoint market participants by not touching upon the central bank's tapering plans. 

Technical levels to watch

Bulls would be eyeing for a strong follow through momentum beyond the 0.9200 handle, above which the momentum could get extended towards Oct. 2016 swing highs resistance near the 0.9260-65 region. 

On the flip side, any pull-back from higher levels now seems to find immediate support near mid-0.9100s, below which the corrective slide could get extended towards the 0.9100 handle and 0.9085 horizontal support.