EUR/GBP Price Analysis: Bulls bounce back from 0.8540, eye 20-day SMA

• EUR/GBP continues to push higher following the previous day’s upside momentum.
• Cross breaks the broader consolidation range of 0.8560 and 0.8670.
• Momentum oscillators trade cautiously with positive bias.

EUR/GBP edges higher on Monday in the Asian trading hours. The pair opened lower and quickly touched the intraday high of 0.8567.

At the time of writing, EUR/GBP is trading at 0.8565, up 0.09% for the day.

EUR/GBP daily chart

On the daily chart, the EUR/GBP cross has been moving in a broader trading channel of 0.8560 and 0.8670 since May with two breakouts in between. 

A sustained move above the intraday high would meet with the first resistance at 0.8572 placed at the 20-day Simple Moving Average (SMA).

In doing so, the next  EUR/GBP could test the 0.8580 horizontal resistance level.

The Moving Average Convergence Divergence (MACD) indicator trades just below the midline, with a neutral stance. Any uptick in the MACD would prompt bulls to retest the 0.8600 psychological mark.

Alternatively, if price moves lower, it will continue with the prevailing downtrend.  In that case, the first downside target emerges near the previous day’s low of 0.8547.

The next downside target appears at the 0.8535 horizontal support level followed by the low of July 16 at 0.8523.

EUR/GBP additional levels