EURGBP recently climbed past the resistance around the .9000 major psychological mark and is now pulling back for a retest. If this holds, price could recover to the swing high around .9175 and beyond.

The 100 SMA is above the 200 SMA to confirm that the path of least resistance is to the upside or that support is more likely to hold than to break. Price is testing the 61.8% Fib that lines up with the broken resistance, but a larger pullback could still reach the 200 SMA dynamic inflection point.

RSI is still heading south to reflect the presence of selling pressure, but the oscillator is already closing in on the overbought region to signal exhaustion. Turning higher could confirm that buyers are about to return and allow the climb to resume.

Stochastic has already reached the oversold region to indicate exhaustion among sellers, and heading back up could signal a return in bullish pressure.

Only a few low-tier reports are lined up from the euro zone economy today while the U.K. has an empty economic calendar. This could be enough to allow inflection points to hold for the time being, unless there are major news events that come up.

Note that the pound could still encounter some downside pressure coming from Brexit uncertainties, although negotiations have somewhat softened their stance on key issues in the past weeks. Meanwhile, the euro could enjoy some upside as nations signal stronger support for the EU Recovery Plan aimed at boosting economic performance after the pandemic.

Another factor to watch out for is a major swing in risk sentiment during the release of the US NFP numbers as this could set the tone for global stimulus efforts. A large pickup in hiring could lend some upside for higher-yielding currencies like sterling while weighing on lower-yielders like the euro.