EUR/GBP Price Analysis: Looks to extend gains above 50-day SMA
- EUR/GBP is making efforts to extend the previous day’s gain.
- Pair seeks additional gains if price decisively breaks 50-day SMA.
- Momentum oscillators in the overbought zone with bullish crossover.
EUR/GBP edges higher on Friday in the Asian session. The pair moves in a very narrow trade band with an upside bias.
At the time of writing, EUR/GBP is trading at 0.8574, up 0.08% for the day.
EUR/GBP 4-hour chart
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On the 4-hour chart, the EUR/GBP cross has been moving lower since it made a high of 0.8642. The multiple top formations make it a critical level to trade. The descending trendline from the mentioned level acts as a barrier for the bulls.
A sustained move above the 50-day Simple Moving Average (SMA) at the 0.8572 mark, could bring more buying opportunities for EUR/GBP bulls. The immediate resistance emerges at the 0.8585 horizontal resistance level.
The Moving Average Convergence Divergence (MACD) indicator trades above the midline, with a bullish crossover. Any uptick in the MACD would amplify the buying pressure toward June 21 high at the 0.8601 key psychological mark.
The next area of resistance could be located near the 0.8620 horizontal resistance level.
Alternatively, if price sustains below the session's low at 0.8570, then it could attempt to test the 08565 horizontal support level.
Next, EUR/GBP bears would flex their muscle at the 0.8545 horizontal support level followed by June 24 low in the vicinity of 0.8530 area.
EUR/GBP additional levels
Author
Rekha Chauhan
Independent Analyst
Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.
