EUR/GBP Price Analysis: Crosses weekly resistance near 0.8550 after UK data
|- EUR/GBP jumps from 200-HMA as UK data deteriorates in April.
- Upbeat data and firmer RSI favor bullish bias towards refreshing the monthly top.
- Weekly horizontal support adds to the downside filters.
EUR/GBP takes the bids to refresh intraday high around 0.8565 during early Monday morning in Europe. The cross-currency pair’s latest gains could be linked to the downbeat UK economics for April.
Read: UK Manufacturing Production falls 1% MoM in April vs. 0.2% expected
The pessimistic data joined the pair’s ability to stay beyond the 200-HMA, as well as firmer RSI (14) to cross the one-week-old resistance line, now support around 0.8555.
As a result, EUR/GBP bulls are en route to the monthly high surrounding 0.8590, a break of which can recall the 0.8600 threshold on the chart.
It’s worth noting that the pair’s run-up beyond the 0.8600 psychological mark will be challenged by May’s peak of 0.8618.
On the contrary, pullback moves remain elusive until staying beyond the 200-HMA level of 0.8535.
Following that, a weekly horizontal support area near 0.8525-20 may probe the EUR/GBP bears before directing them to the 0.8500 round figure.
In a case where EUR/GBP remains bearish past 0.8500, the odds favoring a southward trajectory towards the mid-May low near 0.8390 can’t be ruled out.
EUR/GBP: Hourly chart
Trend: Further upside expected
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