Disappointing Brexit news deflate pound

The cross rose to 3 ½ high in European trading on Wednesday, following comments from senior EU diplomat that reasonable differences in Brexit trade talks persist on three main issues.
Sterling was deflated by the latest news as optimism that trade agreement between the UK and European Union will be reached before transition period ends at the end of this month, continues to fade
On the other side, the single currency benefited from improved risk sentiment on vaccine optimism and broke above psychological barriers at 0.90 (vs GBP) and 1.20 (vs dollar).
Fresh advance broke above pivots at 0.9000/25 (round figure / Fibo 38.2% of 0.9291/0.8860) and cracked 0.9034 barrier (converged 55/100DMA’s).
Return above rising 200DMA (0.8967) was positive signal which needs confirmation on close above 0.9025/34 pivots.
Daily cloud twists on Friday and could be magnetic for bulls, but fading bullish momentum and stochastic at the border of overbought zone on daily chart, require caution.
Favor dip buying above 30 DMA (0.8976) for acceleration towards targets at 0.9075 / 0.9100 (50% retracement of 0.9291/0.8860 / round-figure) and 0.9026 (Fibo 61.8%) in extension.
Caution on fall below 200DMA that would sideline near-term bulls.

Res: 0.9042; 0.9075; 0.9100; 0.9126
Sup: 0.9000; 0.8976; 0.8967; 0.8950