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  • EUR/GBP edges higher in the Asian session on Friday.
  • Cross moves in upward channel with key resistance level near 0.8640.
  • Neutral momentum oscillator tilts in favor of bullish momentum.

The EUR/GBP cross trades with modest gain in the Asian session. The cross opened lower and gained some follow through traction to touch the intraday high at 0.8629.

At the time of writing, EUR/GBP is trading at 0.8626, up 0.11% on the day.

EUR/GBP daily chart

On the daily chart, the cross has been accumulating gains near the multi-days high in the vicinity of the 0.8640 mark. The price witnessed a strong rally from the lows of 0.8560 to the Wednesday high at 0.8643, thus forming an upward price channel which is a bullish technical pattern. If price sustains above the intraday high near the 0.8630 mark, then it has the potential to touch the upward trendline of the mentioned channel at 0.8645. This also coincides with the 20-day Simple Moving Average (SMA).

If price breaks above the 20-SMA, then bulls would be encouraged to march toward the 0.8660 horizontal resistance level followed by the May 6 high at 0.8698.

On the flip side, the Moving Average Convergence (MACD) indicator reads below the midline. A downtick in the indicator would ask sellers to target for immediate support at the Wednesday’s low at 0.8609.

On moving downside, the next stop for bears would be located near the Tuesday low in the area of 0.8580. A break of the mentioned level would mark the breakout of the upward channel on the lower side, which would seek the next target at the beginning of the channel at 0.8560 (May 12 low).

EUR/GBP Additional Levels

 

 

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