EUR/GBP hits fresh highs slightly below 0.8600

EUR/GBP  is headed toward the third daily gain in a row and to the strongest close in three years. The pair continued to rise during the American session and peaked at 0.8597, currently, it trades at 0.8590, near the 0.8600 handle.

The euro has been moving with an upside bias since the Asian session. It bottomed at 0.8515 and then turned to the upside. It broke above 0.8565 and extended gains. Momentum still favors the upside but the pair is facing a strong resistance near the 0.8600 zone. Also above at 0.8625, is the next resistance that is where 2016 highs are located.

GBP back under pressure

The pound was on Wednesday among the worst performers in the currency market. According to analysts from Danske Bank sterling will continue under pressure amid monetary policy and growth divergence and also uncertainty about foreign direct investment into the United Kingdom. They see EUR/GBP targeting 0.90 in a six-month period.