EUR/GBP Price Analysis: Bullish bias remains intact above 0.8600

• EUR/GBP stays mildly bid inside a 13-day-old bullish channel.
• Steady RSI adds to the upside bias, 200-SMA strengthens 0.8560 support.
• Pullback from 0.8680 appears necessary to defend the yearly high.

EUR/GBP picks up bids to reverse the week-start losses around 0.8615 during Tuesday’s Asian session. In doing so, the cross-currency pair remain inside a two-week-long ascending trend channel.

Adding strength to the bullish bias is the firmer RSI (14), as well as the pair’s sustained trading beyond the 200-SMA.

It’s worth noting, however, that the upside momentum needs validation from the latest swing high near 0.8680 before rejecting the bullish channel formation, by crossing the 0.8685 hurdle.

In doing so, the EUR/GBP pair buyers could aim for the recently flashed multi-month high near 0.8720.

Meanwhile, pullback remains elusive until staying beyond the 0.8560 support confluence including the 200-SMA and lower line of the stated channel.

In a case where EUR/GBP drops below 0.8560, the odds of its pullback towards a six-week-old horizontal support area near 0.8485-80 can’t be ruled out.

Overall, EUR/GBP holds onto the bullish trajectory towards refreshing the multi-month high marked in June, near 0.8720. However, any upside beyond the same appears less likely.

EUR/GBP: Four-hour chart

Trend: Further upside expected