Outlook promising, must hold the 20-day SMA line

• Technical indicators suggest that buying pressure is rising, supporting the bullish outlook.
• The pair needs to break above 0.8400 to confirm a bullish continuation.
• A consolidation above the 20-day SMA would also favor a promising outlook.

The EUR/GBP pair seems to be consolidating in a sideways range after last week’s sharp gains, and rose by 0.35% on Monday to 0.8395.

The daily Relative Strength Index (RSI) is currently rising near its middle point suggesting that buying pressure is rising. The Moving Average Convergence Divergence (MACD) is also green and rising, further suggesting that the tide is in favor of the bulls.

A break above the 0.8400 resistance level could trigger a bullish continuation and would open the door for further gains towards 0.8450 and 0.8500. A drop below the 0.8320 support level could lead to further declines. Above the 0.8380 line where the 20-day Simple Moving Average (SMA) converges, serves as a strong support which the bulls must hold to continue rising.

EUR/GBP daily chart