Forex: EUR/GBP above 0.8540; biggest monthly gain in 4 years

FXstreet.com (Barcelona) - EURGBP keeps pushing to the upside, last at 0.8541, mostly on Euro strength, off fresh 13-month highs at 0.8547, in its biggest single month gain since late 2008, when the cross reached its all time highs at 0.9798. So far EURGBP has advanced +5.48% for the current month of January, highest since Dec 2011. "EURGBP 14-day RSI now 82.9," says in his twitter account Chris Weston, Chief Market Strategist at IG, adding: "As far as i can see I have to go back to 1986 to see this indicator higher..." the analyst notes.

For the London session ahead though, there's not much to mention about the economic agenda for either side of the cross, having to wait till early US trading hours for US data, which could be USD movers, thus mostly unnoticed for EURGBP cross. Minor data for EUR will be out at 09:00 GMT in the form of EU M3 money supply y/y. Italy will try to sell some zero coupon bonds as well.

Immediate resistance to the upside shows at recent session highs and 13-month fresh highs 0.8547, followed by Dec 09 2011 highs at 0.8562, and 61.8% Fibo retrace at 0.8580 of 0.9087/0.7756 daily leg down. To the downside, closest support lies at Thursday's highs 0.8479, followed by Jan 22 highs at 0.8440, and Jan 21 lows at 0.8378.