- EUR/GBP makes slow progress in the initial European trading session.
- More consolidation for the cross if price fails to move above 20-day SMA.
- Momentum oscillators trade in the oversold zone with a bullish crossover.
After testing the high of 0.8558 in the overnight session, EUR/GBP retreats toward the 0.8550 mark on Tuesday.
At the time of writing, EUR/GBP is trading at 0.8550, up 0.01% for the day.
EUR/GBP daily chart
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On the daily chart, the EUR/GBP cross has been moving in a broader trading channel of 0.8520 and 0.8700 since early May with two breakouts in between.
A sustained move above the intraday high would meet with the first resistance at the 0.8565 horizontal resistance level.
In doing so, EUR/GBP bulls would then make a way to reach the July 23 high of 0.8584.
The Moving Average Convergence Divergence (MACD) indicator trades with bullish crossover in the oversold zone. Any uptick in the MACD would prompt bulls to retest the 0.8600 psychological level.
Alternatively, if price moves lower, in that case, the first downside target emerges at the 0.8540 horizontal support level.
The bears would aim for the appears at the 0.8520 horizontal resistance level followed by the low of July 29 at 0.8500.