EUR/GBP Price Analysis: Spikes to 2-week tops and retreats, holds above 0.8400 mark

• EUR/GBP regains traction on Wednesday and surges through the 0.8390-40 supply zone.
• Mixed technical indicators warrant some caution before placing aggressive bullish bets.

Following the previous session's modest weakness, the EUR/GBP cross caught some fresh bids on Wednesday and jumped to two-week tops, around the 0.8435 region in the last hour.

Given that the cross showed some resilience below 200-hour SMA on Tuesday, sustained move beyond the 0.8390-0.8400 supply zone was seen as a key trigger for intraday bullish traders.

Meanwhile, technical indicators on the daily chart are still catching up with the recent bounce from two-month lows and warrant some caution before placing any aggressive bullish bets.

Hence, a subsequent positive move is likely to confront some fresh supply near the 0.8470 region, a resistance marked by a descending trend-line, extending from YTD tops set in January.

The mentioned barrier coincides with 61.8% Fibonacci level of the 0.8598-0.8282 downfall, which should act as a key pivotal point and help determine the next leg of a directional move.

On the flip side, any meaningful pullback below the 0.8400 mark might attract some dip-buying and should help limit losses, near the 0.8370 strong horizontal support.

EUR/GBP 1-hourly chart