EUR/GBP Price Analysis: Bulls challenge 0.8610 mark above 20-hour SMA
- EUR/GBP accumulates gains in the Asain session.
- More upside envisioned if price breaks above 0.8605.
- Momentum oscillators trade in oversold trajectory hinting at upside momentum.
The EUR/GBP cross is gathering momentum in the Asian session after the previous day's showdown. The cross respects the swing lows near 0.8595 and in the progression to continue in the north.
At the time of writing, EUR/GBP trades at 0.8603, up 0.10% on the day.
EUR/GBP four-hour chart
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On the four-hour chart, the cross is consolidating near the 0.8595 mark, which coincides with the rising trendline from the lows of 0.8560 on May 12. On moving higher, the first hurdle would appear in the vicinity of Wednesday’s high near 0.8610.
A sustained move above the mentioned level would open the gates for 0.8620 and 0.8640 horizontal trendline resistance levels.
Alternatively, the Moving Average Convergence Divergence (MACD) indicator is in the oversold zone. However, a slight price correction could drag price south toward the 20-hour Simple Moving Average (SMA) at 0.8593. This would also mark a break of the upward sloping line, bringing in the 0.8575 on EUR/GBP bears radars.
The next area of support could be seen at the March 26 low at 0.8534.
EUR/GBP Additional Levels
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.
