EURGBP is ticking higher above the bearish cross within the 20- and 40-day simple moving averages (SMAs). However, the market is trading in a horizontal trajectory within the upper boundary of the 0.8730 resistance and the lower boundary of the 0.8560 support. The RSI is sloping upwards above the 50 level, while the stochastic is heading upwards after the positive cross within the %K and %D lines.
If the price continues to move higher, it could meet the 0.8730-0.8790 resistance area. More bullish movements could open the way for the pair to test the 200-day SMA, currently at 0.8856. Successfully surpassing that, it could drive the bulls until 0.8946.
Alternatively, a dive below the 0.8560 support could take the market to the 13-month low of 0.8470 ahead of the bottom of 0.8280, registered in February 2020.
In conclusion, EURGBP is neutral in the near term but is looking bearish in the medium-term outlook. Any dives below the 13-month trough of 0.8470 will endorse the negative picture.
