EURGBP has advanced considerably over the last few hours and jumped above the 0.8900 handle. Price action is at the momentum taking place above the 20- and 40-simple moving averages in the daily timeframe. The technical picture supports that the rebound on 0.8865 is likely to continue in the short-term.
From the technical point of view, the Relative Strength Index (RSI) is pointing upwards and is standing in the positive territory, however, the MACD oscillator dropped below its trigger line but is still above the zero line.
If prices continue to head higher, resistance should come from the more than three-month high of 0.8960. A jump above this key level would reinforce the short-term bullish view and open the way towards the 0.9030 hurdle, taken from the peak on October 12.
On the flip side, should a downside reversal take form, immediate support will likely come from the 0.8865 barrier and then from the 40-day SMA near 0.8838 at the time of writing. Even lower, the 0.8700 psychological level could be another target given that the zone has been frequently tested in the past.
Regarding the medium-term picture, the market is expected to jump above the 0.8960 high to create a strong bullish tendency as it remains in a weak mode over the last year.
