EURGBP has been marching higher since its downtrend ceased at the 0.8510 region, generating a profound structure of higher highs and higher lows. Nevertheless, in the last few four-hour sessions, the pair has been trading sideways after its upside move got capped at 0.8645.
The momentum indicators are reflecting a loss of momentum for the pair. The stochastic oscillator is descending after posting a bearish cross, while the MACD has dived beneath its red signal line but remains in the positive region.
Should selling pressure intensify, the price could test its most recent low of 0.8603. Dipping beneath that region, the bears could aim for 0.8577 before the spotlight turns to the 0.8560 barrier. Failing to halt there, 0.8510 could prove a tough obstacle for the price to overcome.
To the upside, bullish forces may propel the pair towards its recent reversal point of 0.8645. Conquering this barricade, the price might ascend to challenge the inside swing low of 0.8672. An upside violation of the latter could open the door for the 16-month high of 0.8720.
Overall, EURGBP has been exhibiting signs of strength lately but has not yet managed to totally erase its short-term decline. For that scenario to materialize, the price needs to initially jump above the 0.8645 ceiling.
