EUR/GBP Price Analysis: Justifies nearby resistance break to approach 200-EMA below 0.8700
- EUR/GBP prints five-day winning streak despite retreat from two-month high the previous day.
- Clear break of multi-day-old resistance line, bullish MACD signals favor pair buyers.
- Nearly overbought RSI highlights 200-EMA, six-month-old horizontal area the key hurdles toward the north.
EUR/GBP bulls occupy the driver’s seat around 0.8670, up for the fifth consecutive day heading into Thursday’s London open. In doing so, the cross-currency pair justifies the previous day’s upside break of an eight-week-old descending trend line by reversing the retreat from its highest level since late May, marked on Wednesday.
Apart from the trend line breakout, bullish MACD signals also enable the EUR/GBP buyers to keep the reins.
However, the RSI (14) line appears nearly overbought and hence the 200-Exponential Moving Average (EMA) hurdle surrounding 0.8685 may again prod the pair buyers.
If the EUR/GBP manages to remain firmer past 0.8685, a horizontal area comprising multiple levels marked since January and a five-month-old descending resistance line, respectively near 0.8720 and 0.8765, will be in the spotlight.
Alternatively, the EUR/GBP pullback remains elusive unless the quote provides a daily closing beneath the resistance-turned-support line, close to 0.8620 at the latest.
It’s worth noting that a one-week-long rising support line surrounding 0.8610 and the 0.8600 round figure could challenge the pair sellers past 0.8620 before giving them control.
EUR/GBP: Daily chart
Trend: Limited 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.
