Bulls keep eyes on 0.8600

EUR/GBP remains muted in the Asian session on Tuesday.
Price moves in a broader trading range of 0.8500 and 0.8600.
Momentum oscillators trade with positive bias.

EUR/GBP trades mildly lower following the previous session’s splendid gains. The pair hovers in a very narrow trade band with no meaningful traction. At the time of writing, EUR/GBP is trading at 0.8585, down 0.02% for the day.

EUR/GBP daily chart

On the daily chart, the EUR/GBP cross-currency pair has been trading in a broader trading range of 0.8500 and 0.8600, which constitutes a rectangle technical formation starting from August 19.

Currently, the price moves along with the higher trendline of the mentioned rectangle price pattern. 

A break of the formation on the higher side would ignite a fresh round of buying pressure in the pair with the first upside target appearing at the 0.8620 horizontal resistance level. In doing so, EUR/GBP bulls would then make a way to reach the 0.8640  horizontal resistance level.

The Moving Average Convergence Divergence (MACD) indicator trades above the midline with a bullish crossover. Any uptick in the MACD would encourage bulls to retest the high made in the month of July at 0.8669 (July 20).
Alternatively, if the price moves lower in that case, the bears would meet the 20-day Simple Moving Average (SMA) at 0.8565. Next, EUR/GBP bears would aim at the previous day’s low of 0.8532 followed by the lower trendline of the channel at 0.8500.

EUR/GBP additional levels


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