• EUR/GBP quickly retreats around 50-60 pips from multi-month tops.
• Slightly overbought conditions might have prompted some profit-taking.

The EUR/GBP cross failed to capitalize on its intraday positive move to levels beyond the 0.8900 round-figure mark and quickly retreated around 50-60 pips after hitting fresh five-month tops.

Slightly oversold conditions on the daily chart seemed to be the only factor prompting some profit-taking near a resistance marked by 61.8% Fibonacci level of the 0.9248-0.8277 steep decline.

The mentioned barrier, around the 0.8925 region, should now act as a key pivotal point, which if cleared might be seen as a fresh trigger for bullish traders and pave the way for additional gains.

The cross then might accelerate the momentum further towards reclaiming the key 0.9900 psychological mark before eventually darting towards the next major hurdle near the 0.9085-90 region.

On the flip side, any meaningful pullback seems more likely to attract some dip-buying near the 0.8800 mark (50% Fibo. level) and should help limit the downside near the very important 200-day SMA.

EUR/GBP daily chart

Technical levels to watch