Eurgbp Inches Higher

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Eurgbp Inches Higher

Eur/Gbp Inches Higher, Eyes A Critical Resistance

EUR/GBP is trading near 0.8450 with a +0.28% change on Tuesday. The overall price action shows sideways trading as the cross is stuck in a narrow range.

successful close above the 20 SMA on the EUR/GBP's D1 chart will be a sign that the sideways trading has now ended. That will allow the EUR/GBP to start trending higher towards the next SMA lines.

Eur/Gbp Is In Neutral Territory

quick look at the RSI (14) shows a reading of 50. This is a sign that EUR/GBP is in neutral territory, but the slope of the RSI is rising. So, while the EUR/GBP is neutral for now, it is gearing up for a leg higher amid an increase in the bullish momentum.

The MACD indicator also shows rising bars and a green histogram... This is also a sign that the momentum favors a bullish move in the EUR/GBP.

Most of the momentum indicators paint a similar picture, which shows that the bullish momentum is slowly building up in EUR/GBP. Once the EUR/GBP bulls regain control, the next target will be 0.8500 followed by 0.8550.

The EUR/GBP has been stuck in a consolidation phase for the last 7 sessions. Since then, the EUR/GBP pair has remained little changed with no significant move up or down.

The current trading range of EUR/GBP is from 0.8420 to 0.8460, which is around 40 pips. A break of 0.8460 will be a sign that EUR bulls are back in charge. Similarly, a break of 0.8420 on the D1 chart will be a sign that bears have established control.

On the way down, the first target after 0.8420 will be 0.8400, followed by the next one around 0.8380. Similarly, a move higher will open the doors to the next resistance around 0.8460 and then 0.8480. Of course, the key resistance to conquer will be 0.8500 where a lot of sellers will be lurking around.

The next meeting of the ECB is also just around the corner, which could also have a major impact on the EUR/GBP.

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