EUR/GBP reverses and rises above 0.8400

EUR/GBP erased all losses during the last two hours and climbed back toward 0.8400. The pair is hovering around 0.8400 marginally above the level it closed yesterday.

Earlier today, EUR/GBP weakened following inflation data from the UK. It bottomed at 0.8341, the lowest level in a week. Then it moved sideways near daily lows and recently broke to the upside as EUR/USD climbed to fresh highs and GBP/USD erased all gains. 

The euro printed a fresh daily high against the pound at 0.8406 and still holds a short-term bullish tone. 

Technical levels

From the lows EUR/GBP rose more than 50 pips and is pouting toward 0.8410; above that level, resistance could be seen at 0.8425/3 (Dec 12 high) and 0.8460 (Dec 9 high). On the opposite direction, support now could be located at 0.8360 (Dec 12 low), 0.8340 (daily low) and 0.8300/05 (Dec 05 low / psychological).