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.

Patricio Martín FXStreet

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

EUR/GBP

Overview
Today last price	0.867
Today Daily Change	0.0034
Today Daily Change %	0.39
Today daily open	0.8636

Trends
Daily SMA20	0.8587
Daily SMA50	0.8589
Daily SMA100	0.8605
Daily SMA200	0.8712

Levels
Previous Daily High	0.866
Previous Daily Low	0.8616
Previous Weekly High	0.8631
Previous Weekly Low	0.8558
Previous Monthly High	0.8669
Previous Monthly Low	0.8493
Daily Fibonacci 38.2%	0.8643
Daily Fibonacci 61.8%	0.8633
Daily Pivot Point S1	0.8615
Daily Pivot Point S2	0.8594
Daily Pivot Point S3	0.8571
Daily Pivot Point R1	0.8658
Daily Pivot Point R2	0.8681
Daily Pivot Point R3	0.8702

Author

Patricio Martín

FXStreet

Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.

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