EURGBP recorded a stunning rally over the last month towards a six-month peak of 0.9132. The Ichimoku lines and the moving averages are following this bullish action, with the 40-day simple moving average (SMA) and the 100-day SMA posting a golden cross.
According to the Relative Strength Index (RSI), the market may extend its movement to overbought levels as the index is standing above 70 mark. In addition, the MACD oscillator is still moving north above its red trigger and zero lines in the short-term timeframe.
Should the price decisively close above the roof of the six-month peak of 0.9120, bulls could extend the upward rally towards the ten-year peak of 0.9324. Further advances above this level, could then target the area around the 0.9390 region, reached on October 2009. Even higher, a rally to 0.9500 barrier registered on March 2009 is asserting that the trend is likely to stay tilted to the upside.
On the other hand, a decline could meet the red Tenkan-sen line currently at 0.8886 before meeting the 0.8750 support level. If the losses increase, the pair could touch the 0.8620 and 0.8590 levels in the daily timeframe.
To summarize, EURGBP looks bullish in the short-term, while in the long-term the picture is still neutral.
