EUR/GBP Price Analysis: Bulls flex their muscles and threaten the 200-day SMA
- EUR/GBP closed Thursday at 0.8670, up by 0.20%, hitting a daily high of 0.8695 near the 200-day SMA.
- The daily and four-hour chart flashes bullish signals.
- The 20-day SMA and 100-day SMA are about to perform a bullish cross on the daily chart.
On Thursday, the EUR/GBP cross gained further momentum, closing towards the 0.8670 area, and has already gained 1.34% in September.
In line with that, the daily chart indicates that the technical outlook favours the bulls over the bears. The Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) are comfortably placed on the daily chart in positive territory. Moreover, the pair is above the 20 and 100-day Simple Moving Averages (SMAs), but below the 200-day SMA, suggesting that the bears struggle to challenge the overall bullish trend. Traders should eye the convergence of the 20 and 100-day averages towards the 0.8600 area, which seems to be about to perform a bullish cross, which could boost the buying impulse.
On the four-hour chart, technical indicators also point to a clear dominance of the bulls, with the RSI printing a slight upward slope near the 70 threshold while the MACD displays flat green bars.
Support Levels: 0.8630, 0.8600 (20 and 100-day SMA convergence), 0.8570.
Resistance Levels: 0.8700, 0.8710 (200-day SMA), 0.8750.
EUR/GBP Daily chart
Author
Patricio Martín
FXStreet
Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.
