EUR/GBP has been trading within a range, between 0.8840 and 0.8680, for quite a while now. We still wait with anticipation the break through one of the sides. Looking at a bigger picture, the pair is still within a falling channel, taken from the end of September last year. On a shorter times scale, we can see EUR/GBP is trying climb higher with the help of the tentative short-term upside support line, drawn from the last Friday’s lows.
Thus, although we are neutral on the near term, we see the case for the pair to continue climbing higher within the aforementioned range. A break of the 0.8800 level could interest some more bulls to join in and drive EUR/GBP towards the next good area of resistance at around 0.8820. Certainly, above that lies the 0.8840 zone, which is the upper side of the range, a break of which, could open the doors towards the upper bound of the previously mentioned channel.
Alternatively, if we see a break below the tentative support line, then the next area of support for us to monitor, could be the 0.8768 level, a break of which could send EUR/GBP to test the 0.8752 level, marked by the low of the 19th of June. If this level is not able to withhold the rate, then the pair could make its way towards the short-term upwards moving trendline, drawn from the 30th of May. If that line is broken, then we could see a continuation fall towards the lower side of the previously mentioned range.
The RSI is currently running flat, but above its 50 mark, which is still a slightly bullish indication. The MACD is also running flat and is above its zero line. The only issue here is that the indicator has moved slightly below its trigger line, which tells us to remain cautious.
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