EUR/GBP Price Analysis: Bulls bounce back from 0.8540, eye 20-day SMA

EUR/GBP continues to push higher following the previous day’s upside momentum.
Cross breaks the broader consolidation range of 0.8560 and 0.8670.
Momentum oscillators trade cautiously with positive bias.

Rekha Chauhan Independent Analyst

EUR/GBP edges higher on Monday in the Asian trading hours. The pair opened lower and quickly touched the intraday high of 0.8567.

At the time of writing, EUR/GBP is trading at 0.8565, up 0.09% for the day.

EUR/GBP daily chart

On the daily chart, the EUR/GBP cross has been moving in a broader trading channel of 0.8560 and 0.8670 since May with two breakouts in between.

A sustained move above the intraday high would meet with the first resistance at 0.8572 placed at the 20-day Simple Moving Average (SMA).

In doing so, the next EUR/GBP could test the 0.8580 horizontal resistance level.

The Moving Average Convergence Divergence (MACD) indicator trades just below the midline, with a neutral stance. Any uptick in the MACD would prompt bulls to retest the 0.8600 psychological mark.

Alternatively, if price moves lower, it will continue with the prevailing downtrend. In that case, the first downside target emerges near the previous day’s low of 0.8547.

The next downside target appears at the 0.8535 horizontal support level followed by the low of July 16 at 0.8523.

EUR/GBP additional levels

EUR/GBP

Overview
Today last price	0.8564
Today Daily Change	0.0007
Today Daily Change %	0.08
Today daily open	0.8557

Trends
Daily SMA20	0.8574
Daily SMA50	0.8588
Daily SMA100	0.8603
Daily SMA200	0.8763

Levels
Previous Daily High	0.8584
Previous Daily Low	0.8547
Previous Weekly High	0.867
Previous Weekly Low	0.8541
Previous Monthly High	0.8646
Previous Monthly Low	0.8531
Daily Fibonacci 38.2%	0.857
Daily Fibonacci 61.8%	0.8561
Daily Pivot Point S1	0.8542
Daily Pivot Point S2	0.8526
Daily Pivot Point S3	0.8504
Daily Pivot Point R1	0.8579
Daily Pivot Point R2	0.86
Daily Pivot Point R3	0.8616

Author

Rekha Chauhan

Independent Analyst

Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.

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