The pair is basically trading on opposite ends at the moment as the euro is keeping firmer in trading today while the pound is being pushed lower amid post-Brexit trade concerns, after the UK drew a hard line ahead of talks that will begin next week.
Price is now looking to hold a break above 0.8500 and is moving towards a test of the 100-day MA (red line) @ 0.8513. A break above that will be a step in the right direction for buyers with further resistance then seen @ 0.8538.
The only qualm I have with a stronger breakout in the pair is that if the move over the last few days have in part to do with Buba month-end flows, then that will knock a bit of the wind in the sails of a further upside move from hereon.
However, with the euro keeping firm amid pressure on the dollar as Treasury yields slide and with the pound potentially still likely to encounter more trouble as post-Brexit trade talks begin, there is still some reason to keep with the pair on the way up.
But again, be wary of the key technical levels above as they may play a role to limit short-term gains for the time being.
A key resistance level to watch is the 23 December high @ 0.8592. If buyers can break above that, then there is little in the way of a march towards the 200-day MA (blue line) next.