EUR/GBP through 0.92 mark, highest since Oct. 2016

The EUR/GBP cross continued gaining traction for the fourth consecutive session on Wednesday and surged through the 0.9200 handle for the first time since Oct. 2016.

The shared currency attracted some fresh buying interest following the release of better-than-expected flash Euro-zone PMI prints for August, which remained near historic highs and helped the cross to built on its recent bullish trajectory.

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With today's up-move, the cross has now gained in risen in excess of 270-pips since the beginning of this month and remains supported by growing market expectations of a possible ECB tapering clues at the upcoming Jackson Hole Symposium. 

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Meanwhile, a fresh wave of GBP selling interest, with the GBP/USD major tumbling below the 1.2800 handle to near two-month lows, provided an additional boost to the pair's ongoing upward trajectory. 

Adding to this, possibilities of some stops being triggered on a decisive move above 0.9175 level might have also collaborated to the pair's sharp upsurge of over 35-pips in the past couple of hours. With today's economic data out of the way, a follow through up-move closer to Oct. 2016 swing highs, primarily led by some additional short-covering, now seems a distinct possibility.

Technical levels to watch

The ongoing momentum seems strong enough to get extended towards the mentioned hurdle near the 0.9260-65 region, above which the cross seems poised to aim towards reclaiming the 0.9300 handle. 

On the downside, any pull-back below the 0.9200 handle now seems to find immediate support near 0.9175-70 area, which if broken could prompt additional profit taking slide back towards the 0.9135-30 region.