EURGBP has been trading in horizontal move over the last five weeks with upper boundary the 0.8730 resistance and lower boundary the 0.8560 support. The pair is fluctuating within the Ichimoku cloud and below the flat 20- and 40-day simple moving averages (SMAs). The RSI is sloping upwards marginally below the 50 level, while the stochastic is heading upwards after the positive cross within the %K and %D lines.
If the price tries to surpass the SMAs and the cloud, it could meet the 0.8730-0.8790 resistance area. More bullish movements could open the way for the pair to test the 200-day SMA, currently at 0.8865. A successful surpass could drive the bulls until 0.8946.
On the other side, a drop below the 0.8560 support could take the market until the 13-month low of 0.8470 ahead of the bottom of 0.8280, registered in February 2020.
To sum up, EURGBP is neutral in the near-term but is looking bearish in the medium-term outlook. Any dives below the 13-month trough of 0.8470 will endorse the negative picture.
