- EUR/GBP edges higher in the early European session.
- Pair moves in a broad trading channel.
- MACD trades a tad below the central line and throws caution on direction bets.
The EUR/GBP price is locking in some fresh gains on Monday in the early European trading hours. The cross-currency pair opens the session higher and hovers around the 0.8600 psychological mark with 0.08% gains for the day.
EUR/GBP daily chart
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On the daily chart, the EUR/GBP pair moves inside a broader downward trading channel since mid of April. The formation of a long-legged doji candlestick on Friday indicates a reversal of the previous two day’s selling movement.
The pair opened up higher on Monday than the previous day’s closing and touched the intraday high of 0.8605.
If price crosses the 20-hour Simple Moving Average (SMA) at 0.8610, then it could crawl back to the June 3 high in the vicinity of the 0.8620 area.
The Moving Average Convergence Divergence (MACD) indicator reads just below the midline with a neutral outlook. Any uptick in the MACD would target the 0.8640 horizontal resistance level followed by the May 26 high at 0.8661.
Alternatively, a break below the session’s low at 0.8584 would drag the price lower toward the previous day’s low at 0.8565. This level earlier formed a double bottom formation.
EUR/GBP bears would then take up the challenge to meet the 0.8540 horizontal support level, which also marked the formation of lower low inside the above-mentioned downward channel.