- EUR/GBP’s daily chart shows an upside break of the key falling trendline.
- The daily chart indicators are also biased bullish.
- The pair could challenge the 100-day MA resistance.
EUR/GBP opened above 0.89 in Asia, confirming an upside break of the trendline connecting Aug. 12 and Sept. 3 highs.
So far, the trendline breakout has failed to entice the bulls. This is evident from the pair’s directionless trading around 0.8910.
The upside, however, may gather traction in the European trading hours, as the upside break of the falling trendline is backed by a bullish reading on the MACD histogram. The 5- and 10-day moving averages (MAs) are also trending north, indicating a bullish setup.
The 14-day relative strength index (RSI) is also looking north and could soon cross above 50, confirming a bullish bias.
All-in-all, the 100-day MA, currently at 0.8972, could come into play in the next 24 hours or so.
The bullish case would weaken if the pair finds acceptance under Friday’s low of 0.8880.
Daily chart
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Trend: Bullish
Technical levels
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