EUR/GBP holding comfortably above 100-DMA barrier

The EUR/GBP cross maintained its strong bid tone for the fourth straight session, albeit has retreated few-pips from the highest level since mid-November touched during early European session. 

Currently trading around 0.8665 region, intense selling pressure around the British Pound, amid renewed Breixt worries after UK PM Theresa May's comments over the weekend, helped the cross to decisively break through 50-day and 100-day SMA barriers and touched 8-week high. 

The shared currency's outperformance against its British counterpart could also be attributed to the upbeat release of Sentix Investor Confidence index from the Euro-zone. Meanwhile, the cross seems to have ignored stronger reading of the UK Halifax house Price Index (HPI) for December and held on to its strength near multi-day tops. 

Technical levels to watch

Momentum above session peak resistance near 0.8680 level is likely to get extended beyond 0.8700 handle, towards 0.8707 (Nov. 15 high) above which a fresh bout of short-covering has the potential to continue boosting the cross further towards its next major hurdle near 0.8785 region.

On the downside, 100-day SMA near 0.8630-25 region now becomes immediate support, which if broken is likely to accelerate the slide back towards 50-day SMA support near 0.8585-80 region and a convincing break below this support would now negate possibilities of any further recovery.