EUR/GBP Price Analysis: Bulls approach short-term key hurdle above 0.8600
- EUR/GBP grinds higher towards intraday top, extends Friday’s recovery moves.
- Downward sloping resistance line from mid-June appears critical for further upside.
- Key HMAs restrict immediate downside, RSI favors buyers.
EUR/GBP remains on the front foot for the second consecutive day, up 0.10% intraday around 0.8605 ahead of Monday’s trading bell in Brussels.
In doing so, the cross-currency pair justifies the upside break of the 50-HMA and 200-HMA. Also keeping buyers hopeful is the firmer RSI (14) line, not overbought.
It should be noted, however, that a descending trend line from June 15, around 0.8615 by the press time, restricts short-term upside moves of the EUR/GBP pair.
Following that, the 61.8% Fibonacci retracement of the June 15-16 downturn, near 0.8640, could gain the pair buyer’s attention.
Should the recent bullish bias gain acceptance past 0.8640, the odds of the pair’s run-up towards the 0.8700 round figure and then to a monthly high of 0.8721 can’t be ruled out.
Meanwhile, pullback moves remain elusive until the quote stays above the HMA confluence surrounding 0.8590.
Even if the quote drop below 0.8590, the latest swing low of 0.8561 can probe the EUR/GBP bears before giving them control.
In that case, the 0.8500 round figure and the monthly low of 0.8485 will be in focus.
EUR/GBP: Hourly chart
Trend: Further upside expected