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EURGBP failed to cross below 0.8555
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Upside moves may be next
EURGBP is regaining some ground after the several attempts to move beneath the 0.8555 support level. According to technical oscillators, the RSI is ticking north after the bounce off the 30 level, while the MACD is strengthening its upside momentum above its trigger line in the negative region.
To attract new buyers, the bulls will have to surpass the nearby resistance of 0.8610 and move beyond the 20-day SMA at 0.8640, meeting the 0.8650 resistance level. Another successful battle could see the price jumping into the 200- and the 50-day simple moving averages (SMAs) currently at 0.8660 and 0.8670 respectively. Running higher, the market may meet the previous top of 0.8765.
Hence, a downside correction could still be possible in the coming sessions. If the pair slumps below the 0.8555 support, it could stabilize near the 0.8523 mark. Otherwise, the sell-off could expand towards the 0.8490 territory.
Summing up, EURGBP has not eliminated downside risks yet, despite marking a positive week. To boost buying confidence, the pair will need to crawl above 0.8610.
