EUR/GBP Price Analysis: 0.8360 remains a tough nut to crack for bulls
|- EUR/GBP sees a renewed upside while above 0.8300.
- The cross needs to clear the 21-DMA to take on the 0.8360 barrier.
- Bearish RSI keeps bulls cautious ahead of key BOE, ECB showdown.
EUR/GBP is trying hard to extend the previous rebound from near the 0.8320 region, currently trading in the green at 0.8336.
Despite the uptick, bulls appear non-committal ahead of the BOE and ECB monetary policy decisions due Thursday, with the former likely to hike interest rates for the second time in a row.
The ECB is likely to stand pat while dismissing the inflationary concerns. The divergence between central bank policies is likely to limit the bullish potential in the cross.
Technically, the EUR/GBP cross is making headways to recapture the bearish 21-Day Moving Average (DMA) at 0.8346.
Further up, the recent range highs near 0.8360 will emerge as a powerful resistance for the optimists.
The next level to beat for bulls will be the 0.8400 round number.
EUR/GBP daily chart
The 14-day Relative Strength Index (RSI) remains below the midline, warranting caution for bulls.
A resurgence in selling could call for a retest of Tuesday’s low of 0.8318, below which 0.8300 could be probed.
That level is the critical horizontal trendline support on the daily time frame.
EUR/GBP additional levels
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