EURGBP Edges Eastbound; Upholds Positive Structure

Technical analysis of Forex market

EURGBP is currently tackling the mid-Bollinger band, preserving a neutral-to-bullish tone after bounces off the 50- and 100-day simple moving averages (SMAs), which followed a retreat from the recent five-and-a-half-month high of 0.9291. The dampened slopes of the 50- and 100-day SMAs continue to endorse the gradual positive incline in the pair.

The short-term indicators reflect that positive momentum is strengthening. The MACD, although below its red trigger line, has held above zero, and appears set to reclaim it. Moreover, the positively charged stochastic oscillator’s %K line is rising above its red %D line, promoting further advances, while the rising RSI is climbing above its neutral threshold. Worth mentioning is the supportive trend line drawn from 0.8281 and the hiking 200-day SMA, which may further boost the positive pattern.

If buyers push over the mid-Bollinger band at 0.9145, the pair may shoot for the 0.9211 level, which is the 23.6% Fibonacci retracement of the up leg from 0.8281 to 0.9498. Overcoming this, the price may challenge the upper Bollinger band at 0.9248, before revisiting the 0.9291 peak. Should a more aggressive climb unfold, the pair may stretch for the 0.9326 barrier and the 0.9386 top of March 23.

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To the downside, sellers may encounter a fortified support area from the 50-day SMA at 0.9058 until the 0.9024 low, which contains the 38.2% Fibo of 0.9034, and the 100-day SMA merged with the lower Bollinger band. Successfully diving underneath this, the rising diagonal line may impede the price from falling towards the 50.0% Fibo of 0.8890. Slightly below, the 200-day SMA in-line with the 0.8863 trough, may potentially terminate the decline.

In brief, it seems that EURGBP may maintain a neutral-to-bullish bias, creeping towards the ascending line before a clearer direction is revealed.