- EUR/GBP gathers momentum to trade higher in the European session.
- Bulls find support at the double bottom formation near the 0.8550 mark.
- Momentum oscillator holds onto the negative territory.
EUR/GBP manages to gather some upside movement following the previous heavy sell-off on Tuesday.
At the time of writing, EUR/GBP is trading at 0.8559, up 0.13% for the day.
EUR/GBP 4-hour chart
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On the 4-hour chart, the EUR/GBP cross has been consolidating above the 0.8550 level, with multiple supports making it a critical level to trade. The descending trendline from the high of 0.8647 exerts selling pressure on the pair.
If price breaks the intraday high, then it could test the 20-day Simple Moving Average(SMA) at 0.8570 followed by the 0.8585 horizontal resistance level
That said, the Moving Average Convergence Divergence (MACD) indicator which reads below the midline warns EUR/GBP bulls. Any uptick in the MACD would then push price higher toward the previous day’s high at 0.8601.
Alternatively, if price reverses, then it could crawl back to the low of June 21 in the vicinity of 0.8550 area.
A break below 0.8550 could ignite a fresh round of selling toward the levels last visible in March. The bears would be ready to occupy March 26 low at 0.8534 followed by the low made on March 29 at 0.8505.
EUR/GBP additional levels
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