Market Analysis: EUR/GBP RalliesEUR/GBP is gaining pace and might extend its rally above the 0.8700 zone.
Important Takeaways for EUR/GBP Analysis Today
· EUR/GBP started a fresh increase above the 0.8620 resistance zone.
· There is a major bullish trend line forming with support near 0.8640 on the hourly chart at FXOpen.
EUR/GBP Technical Analysis
On the hourly chart of EUR/GBP at FXOpen, the pair started a fresh increase from the 0.8580 zone. The Euro traded above the 0.8620 level to move into a positive zone against the British Pound.
The EUR/GBP chart suggests that the pair settled above the 50-hour simple moving average and 0.8640. It is now consolidating gains below the 0.8700 resistance zone. The RSI is moving lower and suggesting a minor downside correction.
If there is no move above 0.8690, the pair could correct lower. Immediate support sits at 0.8665 or the 23.6% Fib retracement level of the upward move from the 0.8598 swing low to the 0.8685 high.
The next major support is near a bullish trend line at 0.8640. It is close to the 50% Fib retracement level of the upward move from the 0.8598 swing low to the 0.8685 high. A downside break below the 0.8640 support might call for more downsides. In the stated case, the pair could drop toward the 0.8600 support level.
Immediate resistance is near 0.8690. The next major resistance for the bulls is near the 0.8700 handle. A close above the 0.8700 level might accelerate gains.
In the stated case, the bulls may perhaps aim for a test of 0.8740. Any more gains might send the pair toward the 0.8800 level in the coming sessions.
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