EURGBP has remained in a trading range in the short-term over the last one-and-a-half month with upper boundary the 0.8840 resistance level and lower boundary the 0.8700 handle. The price has found strong obstacle at the 200-simple moving average (SMA) in the medium-term as it has been developing below it since the beginning of March.
From the technical point of view, in the daily timeframe, the price is moving well above the 20- and 40-day SMAs, while the technical indicators hold above their neutral levels. The RSI indicator is pointing up and it has managed to cross into positive territory above the 50 level. Also, the MACD oscillator is slightly strengthening its momentum in the bullish area.
Strong gains could drive the price towards the next immediate resistance level of 0.8840, which stands above the 200-SMA. In case of a run above the aforementioned level, the price could touch the upper boundary of the downward sloping channel, near 0.8880. In case of further upside pressure, the pair could penetrate the channel to the upside and drive EURGBP towards the 0.8930 barrier.
On the flip side, an immediate support level is likely to come from the 20- and 40-SMAs, both near 0.8770 which has proved a strong resistance area in the past. A break below that could lead prices near the 0.8700 handle. Further losses could push the pair until the 0.8620 support.
In the bigger picture, the pair remains in a slightly downward-tilting channel, which has been in place since September 2017.
