EUR/GBP to fresh 10.5 month highs, can it carry on through 0.92 the figure?

Currently, EUR/GBP is trading at 0.9170, up 0.15% on the day, having posted a daily high at 0.9178 and low at 0.9154.

EUR/GBP is better bid on yield differentials and the divergence is favouring the euro which has elevated the cross rate right up to a 10.5 month high in the US session. 

However, the data from the EZ, (weaker-than-expected German ZEW survey for August), was a drag on the euro in the European shift and weighs fundamentally ahead of the major risk event this week that is the Jackson Hole. The price may well be a little rich here if unable to extend through the 0.92 handle ahead of the event where nervous bets placed on Draghi endorsing QE cuts at Jackson Hole this weekend could be first off the shelf on anything but that and lead to a resurgence in the dollar and support the cross lower.

GBP/USD outlook stays bearish near term – Scotiabank

EUR/GBP levels

With the next upside target at 0.9229 as the 30th Sep 2010 highs, EUR/GBP’s advance remains intact with the 78.6% Fibonacci retracement at 0.9170 achieved and an area of interst already highlighted by analysts at Commerzbank. "The currency pair will stay immediately bid while it remains above the 0.9106 near term uptrend line, argued the analysts, adding, "below it lies the four month support line at 0.8940. The up move remains intact above here. Where are we wrong? Below the 0.8743 14th July low would trigger losses to the 200 day moving average at 0.8646."