EUR/GBP climbs to one-week highs near 0.8650

• Euro among top performers on Wednesday, boosted by yield differentials.
• EUR/GBP eyes the 20-day simple moving average and the 0.8650 area.

The EUR/GBP is rising for the second day in a row, and recently it printed a fresh one-week high at 0.8642. It is hovering around 0.8635/40 with a bullish tone intact. A stronger euro across the board and a bearish correction in GBP/USD boosted the EUR/GBP to the upside. Also, technical factors favored the move.

The euro is sharply higher versus the Swiss franc. The EUR/CHF jumped on Wednesday to 1.1027, reaching the highest level since April 29, and then it pulled back, holding above 1.1000.

Cable is retreating from monthly highs, and it bottomed at 1.4129. Risk aversion across financial markets weighed on GBP/USD, adding more support to EUR/GBP.

From a technical perspective, EUR/GBP continues to move with an upside bias, near a strong resistance area seen at 0.8650, a horizontal level, and the 20-day moving average. A break above would expose the next resistance at 0.8670, and then attention would turn to the 0.8700 mark.

On the flip side, 0.8625 (previous resistance) is now the immediate support, followed by 0.8605/10 (daily low).

Technical levels