EURGBP is consolidating after a strong upside rally in the preceding sessions, while it is still holding well above the long-term falling trend line. The RSI is losing its positive momentum after the pullback from the overbought region. Also, the stochastic oscillator is ready to create a bearish cross within the %K and %D lines above the 80 level.
A reversal to the downside could find immediate support at the 0.8510 level, while below that, the descending trend line around 0.8480 could act significant barrier for traders. If the latter fails to halt bearish movements, the next target could be the 200-day SMA at 0.8438.
On the upside, the price could attempt to overcome the latest high of 0.8590 ahead of the 0.8600 psychological number. Should traders continue to buy the pair above that peak, bringing the uptrend into play, resistance could then run towards the 0.8660 barrier.
The short-term outlook has been bullish over the past month and only a decisive close below the downtrend line could resume the bearish picture.
