EUR/GBP Price Analysis: Hits a six-day high, as bull's eye 0.8600

EUR/GBP resumes its uptrend and hits a six-day high, with buyers set to challenge higher prices after weaker economic data from the UK hurt the Pound Sterling (GBP) prospects. At the time of writing, the pair is exchanging hands at 0.8579, gains 0.52%.

EUR/GBP Price Analysis: Technical outlook

From a daily chart perspective, the cross remains neutral to downward biased, but the latest economic data from the UK shifted flows and favored the Euro (EUR). Today’s price action witnessed the EUR/GBP printing a new six-day high at around 0.8580, which confluences with the 50-day Simple Moving Average (SMA). A break above would expose the 0.8600 figure, followed by the month-to-date (MTD)  high of 0.8669.

Short term, the pair is set to close the week in an upbeat mode, as the pair would end Thursday’s session at weekly highs. If EUR/GBP decisively breaks 0.8600, key resistance levels emerge at the August 14 high at 0.8632, followed by the August 11 daily high at 0.8669. Next stop would be 0.8700. Conversely, if the cross drops below the 200-hour MA (HMA) at 0.8553, Thursday’s lows would be up for grabs at 0.8534, followed by the YTD low at 0.8492.

EUR/GBP Price Action – Hourly chart