EUR/GBP Price Analysis: Buyers remain hopeful around mid-0.8800s
- EUR/GBP fades bounce off monthly support, grinds near intraday high of late.
- Sustained trading beyond 200-SMA, looming bull cross on MACD favor buyers.
- Weekly resistance line guards immediate upside ahead of monthly high.
EUR/GBP grinds near an intraday high surrounding 0.8850 during the initial hours of Monday morning in London. In doing so, the cross-currency pair stays above the 200-Simple Moving Average (SMA) despite fading bounce off the monthly support line.
It’s worth noting that the impending bull cross on the MACD and steady RSI (14) joins the quote’s successful trading above the key moving average to keep buyers hopeful.
That said, a one-week-old descending trend line restricts the EUR/GBP pair’s immediate upside to near 0.8870.
Following that, the 0.8900 round figure and multiple hurdles near 0.8910 could act as the last defense of the pair buyers before directing the quote toward the monthly high of near 0.8980.
It should be observed that the EUR/GBP run-up beyond 0.8990 will need validation from the 0.9000 psychological magnet to aim for the previous yearly high surrounding 0.9250.
On the contrary, the 200-SMA and an ascending trend line from January 19, close to 0.8835 and 0.8828 in that order, restrict the short-term downside of the EUR/GBP pair.
Following that the 61.8% Fibonacci retracement level of the pair’s January-February upside and the late January swing low, respectively near 0.8820 and 0.8760, will be in focus.
Overall, EUR/GBP is likely to remain firmer unless offering clear trading below 0.8828.
EUR/GBP: Four-hour chart
Trend: Further upside expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
