EURGBP (1H) - short term bullish bias
The pair has been trading in a narrow range between 0.8580 and 0.8670 for three weeks. The latest RSI divergence i.e. lower lows in the price vs. higher low in the indicator suggests weakening pressure from the sell-side. Last Friday's breakout above 0.8625 and the golden MA cross confirmed the buildup of a bullish momentum. We expect the euro to rally towards the upper limit of the consolidation range, where a breakout could trigger an extended rally for the week to come.
Key support: 0.8610
Key resistance: 0.8670
The pair has been trading in a narrow range between 0.8580 and 0.8670 for three weeks. The latest RSI divergence i.e. lower lows in the price vs. higher low in the indicator suggests weakening pressure from the sell-side. Last Friday's breakout above 0.8625 and the golden MA cross confirmed the buildup of a bullish momentum. We expect the euro to rally towards the upper limit of the consolidation range, where a breakout could trigger an extended rally for the week to come.
Key support: 0.8610
Key resistance: 0.8670