EURGBP is surging towards a fresh 16-month high of 0.8720, helping the market to switch to a more bullish one. The price jumped above the upper Bollinger band, which is a strong sign for more increases. The RSI indicator is approaching the overbought region with strong momentum, while the stochastic oscillator surpassed above the 80 level.
Should the price close comfortably at or above today’s intra-day high, traders could add more value to the pair, pushing the market up to the 0.8860 resistance achieved in November 2020.
In the negative scenario, the price could retest the upper Bollinger band, which overlaps with the 0.8660 support and which also halted the upside movements in the past. If this proves easy to break this time, the decline may next pause somewhere between 0.8590-0.8620, while even lower, investors could shift attention to the mid-level of the Bollinger band at 0.8536.
In brief, EURGBP is in a bullish mode in the short-term timeframe and is also turning positive in the bigger picture. A successful drop below the 200-day simple moving average (SMA) may switch the outlook back to neutral.
