EUR/GBP - EUR/GBP Looks Bullish; Next Target 0.8850 - 01/24/2017 (GMT)

The euro was traded lower against the British pound on Monday as it plunged more than 0.7% in contrast to the EUR/USD pair which edged higher. The EUR/GBP pair is trading in an upward move since the end of June 2016 and now is ready to retest again the ascending trend line which overlaps with the 50 and 200 SMAs on the daily chart. Over yesterday’s trading period, the price had a strong rebound on the 100-SMA and slipped lower while, on the 4-hour chart, the moving averages are sloping downwards endorsing the bearish attitude on price. Moreover, the MACD oscillator is moving lower and is slightly above the zero line.

On the other hand, the stochastic oscillator seems to be in disagreement with the bearish price action as its moving averages have just created a bullish crossover in the oversold area which is a very good buy signal on price. So, if the price surpasses the aforementioned obstacle, 100-daily SMA, it would open the door for the 0.8850 resistance barrier.