EURGBP appears to be finding some footing on the mid-Bollinger band since May 12. Further helping the move up are the recent bullish crossovers of the 200-period simple moving average (SMA) by the gradually rising 50- and 100-period ones.
Taking a glimpse at the short-term oscillators, they reflect a pause in the positive picture. The RSI is turning up above its neutral mark while the MACD, in the positive region, has slipped below its red signal line. That said, the stochastic oscillator is displaying positive signals as its blue %K line has pivoted near the 20 level and performed a bullish overlap of the red %D line.
Should buyers gain speed off the mid-Bollinger band at 0.8926, resistance could originate from the upper Bollinger band and the 0.8990 barrier. Moving higher, if the resistance section from the 0.9033 level – which is the 38.2% Fibonacci retracement of the up leg from 0.8281 to the 11-year peak of 0.9497 – to the 0.9055 obstacle fails to halt the ascent, the hike may stretch towards the 0.9133 inside swing low and the 23.6% Fibo of 0.9212.
Alternatively, if there is a dip below the mid-Bollinger band at 0.8926, the pair could encounter the 50.0% Fibo of 0.8889 ahead of a support trench from 0.8864 – 0.8825, which includes the lower Bollinger band and the 50-period SMA. Stepping underneath, the 100- and 200-period SMAs around 0.8780 could challenge the drop towards the 61.8% Fibo of 0.8745 beneath. Falling further, the limiting support of 0.8682 may deny sellers’ efforts of seeing the 0.8620 and 0.8593 troughs.
Overall, the very-short-term timeframe looks to be improving and a break above the 0.9000 psychological number may reinforce the positive outlook, while only a shift below 0.8682 could render the move obsolete.
