EURGBP experienced a minor pullback after its uptrend failed to cross above the 0.8588 region. However, the pair quickly bounced back and recouped part of its losses, while the ascending 50- and 200-period simple moving averages (SMAs) paint a bright technical picture.
The momentum indicators suggest that positive momentum is strengthening. Specifically, the stochastic oscillator is climbing steeply, while the RSI is sloping upwards beyond its 50-neutral mark. Moreover, the price is trading above the Ichimoku cloud, endorsing a broader bullish short-term picture.
To the upside, should the advance resume, the 0.8559 barrier might act as the first line of defence. Jumping above this level, the price could challenge the recent high of 0.8588. Failing to stop there, the bulls may aim for the May peak of 0.8617.
Alternatively, if bullish pressures wane, the pair could descend towards 0.8528, which overlaps with the 50-period SMA. Diving beneath that region, the recent low of 0.8491 could halt any further declines. Should that floor collapse, the spotlight might turn to 0.8432 before the 0.8392 obstacle appears on the radar.
Overall, EURGBP appears to have the necessary momentum to push higher and erase its recent drop. However, a dive beneath the 0.8491 level could alter its short-term picture back to negative.
