EURGBP has been in an overall uptrend since the start of May. Yesterday the pair recorded a seven-month high of 0.8866.
Today’s down movement has eased the RSI and could hint to a change in momentum. The indicator is still well into bullish territory though at 66. In terms of the Ichimoku analysis, the positive alignment when the Tenkan-sen line (red) crossed above the Kijun-sen (blue) is still in place and also supports a short-term bullish bias. Note though that the Tenka-sen is currently flat, perhaps indicating that the bullish run might take a pause.
Yesterday’s high of 0.8866 could offer some resistance to up movements in price. If the price heads higher, the 0.89 handle might act as a psychological barrier to the upside as well.
On the downside, the 0.88 level, another potential psychological mark, might provide support. Further down, the current level of the Tenkan-sen at 0.8753 could offer additional support.
Turning to the medium-term picture, the pair was in large part ranging in recent months but both the 50- and 200-day moving averages currently being upward sloping are hinting towards a bullish tilt for the pair.