EURGBP is moving higher, gaining some ground after the pair found a strong support obstacle near the 0.8655 barrier. Neutral to positive risks remain in the background as the RSI increases momentum to the upside in the positive region, while the %K line of the stochastic oscillator turned higher and is ready to create a bullish cross with the %D line in the oversold zone.
An advance in the price may retest the 0.8930 resistance level, identified by the recent highs of the previous week. A break higher would turn focus to 0.8995, registered on September 21, which tried to halt upside movements several times in the past. Above that, investors would be interested to see whether bullish dynamics can overcome the previous peak and meet the one-year high of 0.9100.
On the other side, a decline in the price may retest the 20- and 40-simple moving averages (SMAs), which hold near the 0.8800 handle. Further down, the next stop could be at the 0.8770 support, taken from the inside swing on November 12, where any violation would resume the downleg from 0.9100 towards the 0.8655 support.
To conclude, both the short- and medium-term outlooks are looking neutral at the moment.
