EUR/GBP eyes bullish turn: A breach of 08600 could spark uptrend

EUR/GBP consolidates within a tilted downward bias, with key support at 0.8504.
The pair’s bullish turn hinges on a 0.8600 breach, testing 50-day EMA.
RSI is nearing bullish zone; RoC indicates a potential uptrend.

Christian Borjon Valencia FXStreet

EUR/GBP reverses Thursday’s losses and is set to print weekly gains of 0.40% after Pound Sterling (GBP) bulls emerged yesterday, trimming some of its Wednesday losses. Nevertheless, selling pressure waned, and the EUR/GBP sits above a technical support level. At the time of writing, the EUR/GBP exchanges hands at 0.8573, up 0.32%.

EUR/GBP Price Analysis: Technical outlook

The EUR/GBP daily chart portrays the pair in consolidation, with a downward bias, which could extend if sellers drag prices past the year-to-date (YTD) low of 0.8504. In that event, the next support would be the 0.8450 psychological level before the EUR/GBP dives towards the August 24 swing low of 0.8408.

Conversely, the EUR/GBP could threaten to turn bullish, above the 50-day Exponential Moving Average (EMA) at 0.8616, which would be tested once the Eur/GBP passes the 0.8600 mark. A breach of the latter will expose the June 28 swing high at 0.8658, ahead of the 100-day EMA a 0.8668, followed by the 200-day EMA at 0.8681.

Oscillator-wise, the Relative Strength Index (RSI) is at the brisk of turning bullish, which could exacerbate the EUR bulls’ reaction. The three-day Rate of Change (RoC) portrays the cross as having an upward biased.

Hence, the EUR/GBP could be ready for a bullish resumption in the near term.

EUR/GBP Price Action

EUR/GBP

Overview
Today last price	0.8575
Today Daily Change	0.0029
Today Daily Change %	0.34
Today daily open	0.8546

Trends
Daily SMA20	0.8569
Daily SMA50	0.8617
Daily SMA100	0.8715
Daily SMA200	0.8733

Levels
Previous Daily High	0.8575
Previous Daily Low	0.8535
Previous Weekly High	0.8606
Previous Weekly Low	0.8521
Previous Monthly High	0.8658
Previous Monthly Low	0.8518
Daily Fibonacci 38.2%	0.855
Daily Fibonacci 61.8%	0.856
Daily Pivot Point S1	0.8529
Daily Pivot Point S2	0.8512
Daily Pivot Point S3	0.849
Daily Pivot Point R1	0.8569
Daily Pivot Point R2	0.8592
Daily Pivot Point R3	0.8609

Author

Christian Borjon Valencia

FXStreet

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

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