- EUR/GBP climbed to over a one-week high, albeit struggled to capitalize on the move.
- Traders now seem to be waiting for the BoE decision before placing fresh directional bets.
- Sustained breakthrough of a descending trend-line is needed to confirm a bullish bias.
The EUR/GBP cross caught fresh bids on Thursday and climbed to an over one-week high, around the 0.8460 region, though bulls struggled to capitalize on the move and push it convincingly above the very important 200-day SMA. The cross was last seen trading around the 0.8440 area as traders now await the Bank of England policy decision before placing fresh directional bets.
From a technical perspective, any subsequent move up is likely to confront resistance near a descending trend-line extending from April 2021. The said barrier is pegged near the 0.8500 psychological mark and should act as a pivotal point, which if cleared decisively would be seen as a fresh trigger for bulls and pave the way for additional gains.
The EUR/GBP cross could then accelerate the momentum towards testing the next relevant resistance near the 0.8550 region. Some follow-through buying has the potential to lift spot prices further and allow bulls to aim back to reclaim the 0.8600 round figure for the first time since September 2021.
On the flip side, the 0.8400 mark now seems to have emerged as immediate strong support. Any subsequent decline might continue to attract some buying near the weekly low, around the 0.8365 region. A convincing break below the latter would prompt some technical selling and drag the EUR/GBP cross further towards the 0.8300 mark en-route mid-0.8200s.
EUR/GBP daily chart
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