EUR/GBP Price Analysis: Bulls approach 0. 8700 inside ascending triangle
- EUR/GBP picks up bids to reverse Friday’s losses.
- Successful rebound from 21-SMA, bullish chart formation favor buyers.
- Sellers need to break 100-SMA to retake control, 61.8% FE acts as additional upside filters.
EUR/GBP bulls keep reins around 0.8680-85 inside a weekly ascending triangle formation during early Monday morning in Europe. In doing so, the cross-currency pair teases buyers ahead of the UK’s data dump for July.
That said, the quote’s latest rebound took place from the 21-SMA, which in turn gained support from the upward sloping RSI (14), not overbought, to keep buyers hopeful.
Hence, a descending resistance line from Thursday, around the 0.8700 threshold is likely to gain the intraday trader’s attention.
Following that, the latest high near 0.8715 and the stated triangle’s resistance line near 0.8720 could test the EUR/GBP bulls.
Also acting as an upside hurdle is the 61.8% Fibonacci Expansion (FE) of the pair’s moves between August 25 and September 05, around 0.8725.
Alternatively, pullback moves remain elusive until the quote stays beyond 0.8670 support confluence, including the 21-SMA and the aforementioned triangle’s support line.
If the EUR/GBP bears manage to conquer the 0.8670 support, the 0.8600 round figure could entertain them before directing them towards the 0.8565-60 level including the 100-SMA and the latest August swing low.
EUR/GBP: Four-hour chart
Trend: Limited upside expected