EUR/GBP breaks above 0.8550 and jumps toward 0.8600

EUR/GBP was trading above0.8550 and accelerated the upside during the “London fix”. The pair peaked at 0.8582, hitting the highest level since November 23. The euro is headed toward the eighth daily gain out of the last nine trading days. 

During the last hour, the US dollar lost strength in the market and pushed EUR/USD to fresh daily highs while GBP/USD only manged to move away from the lows. 

EUR/GBP levels to watch 

The pair was holding near the highs, consolidating above the important resistance area of 0.8550 and eying 0.8600. Above that level, the next resistance level to watch could be seen around 0.8635/40 (Nov 21 high). 

The bullish tone is likely to remain high as long as price holds above 0.8550. The pound needs to push the pair under 0.8485/0.8495 (short-term uptrend line) to recover some momentum.