EUR/GBP struggling to defend 0.9000 mark

The British Pound outperformed against its European counterpart on Monday, with the EUR/GBP cross reversing nearly 50-pips from session high level to currently trade around 0.9000 handle. 

The shared currency remained well offered despite of a surprisingly stronger-than-expected Sentix Investor Confidence, released on Monday and posting a 4-month high of 8.5 for October as compared to September's 5.6 and 6.3 estimated.

Meanwhile, a tepid recovery bounce in the GBP/USD pair, following Friday's flash-crash, is further forcing some liquidation of bearish GBP bets and weighing on the EUR/GBP cross. 

From technical perspective, the cross is reversing from 23.6% Fibonacci retracement level of 0.8333-0.9263 recent up-swing and hence, a sustained trade below 0.9000 handle might lead to further corrective move in the near-term.

Technical levels to watch

Immediate downside support is pegged at 0.8960 level below which the cross is likely to drift towards 38.2% Fibonacci retracement level support near 0.8900 handle and the momentum could further get extended towards 0.8850 intermediate support en-route 50% Fibonacci retracement level support near 0.8800 handle.

Meanwhile on the upside, 0.9040 level now seems to have emerged as immediate strong resistance, which if conquered now seems to boost the pair back towards 0.9100 handle before resuming its near-term bullish trajectory back towards reclaiming 0.9200 handle.