EURGBP is trading between the supporting mid-Bollinger band and its capping upper Bollinger band, struggling to sustain its upside vibe north of its rising 50-period simple moving average (SMA). The 200-period SMA, which has stabilized for some time now, continues to sponsor a horizontal trajectory in the pair, while the bullish 50- and 100-period SMAs are endorsing upward price action, aimed at the upper regions of a trading range that started from the beginning of the year.
The range has been widening constantly and now stretches from a lower mark of 0.8202 until a ceiling of 0.8512. The short-term oscillators are mixed, exhibiting conflicting messages in directional momentum. The MACD, in the positive region, is holding a little bit north of its red trigger and zero lines, while the negatively charged stochastic oscillator is suggesting that sellers are ahead. Meanwhile, the RSI is flirting with the 50 threshold, failing to signal a distinct clue regarding driving momentum.
Sellers would need to drive the price below the 0.8400 handle, where the mid-Bollinger band also resides, in order to reinforce negative hopes in the pair. Sinking past the mid-Bollinger band, the bears may then target a critical region of support existing from 0.8371 until the 100-period SMA at 0.8357. Should this fortified support barrier fail to provide footing for buyers, the April 22 trough at 0.8309, and the 0.8300 hurdle could come under heavy attack should profound selling endure past the 100-period SMA.
On the other hand, if buying powers strengthen, resistance could commence at the 0.8433 high, coupled with the upper Bollinger band. Piloting beyond the upper Bollinger band, the bulls may be encouraged to challenge the 0.8459-0.8466 resistance band, moulded by the April highs, as well as the adjacent 0.8473 border. Should the bulls successfully overrun these congested resistance obstacles, the road opens for a revisit of the 0.8500 mark and the 0.8512 ceiling of the trading range.
Summarizing, EURGBP is holding on to its neutral-to-bullish tone above the 0.8357-0.8371 support section. That said, a price dive past this mentioned support is likely to shift the directional outlook towards the lower end of the range. Yet, a climb in the pair past the 0.8459-0.8466 boundary may bring about a retest of the ceiling of the range.
