- EUR/GBP consolidates gains on the first day of the week.
- The price movement inside the upside channel brings hope for bulls.
- Momentum oscillators divergence warns caution on aggressive bids.
EUR/GBP manages to ring in some gains following the early morning subdued price action . The pair hovers in a very narrow trade band with no meaningful traction. At the time of writing, EUR/GBP is trading at 0.8561, up 0.05% for the day.
EUR/GBP daily chart
Technically speaking, the cross-currency pair does not look back after testing the low of 0.8450 on August 10. The pair continued to move higher inside the upward channel extending from the mentioned level. Currently, the price remains pressured below the 21-day Simple Moving Average (SMA) at 0.8567. On the successful break of the level, the price will continue to march higher with the first upside target at the 0.8580 horizontal resistance level.
The Moving Average Convergence Divergence (MACD) holds onto the overbought zone. Any uptick in the MACD would accelerate buying toward the key 0.8600 level followed by the 0.8640 horizontal resistance zone.
Alternatively, if price breaks intraday low, it could move back to the previous day’s low of 0.8544. A break beneath the bullish sloping line of the channel could be the beginning of the fresh round of selling with the 0.8520 and the 0.8500 horizontal levels on the bears radar.