Jumps above 0.8600 as bulls target the 100-DMA

• EUR/GBP prints a new high in eight days, but it remains shy of reclaiming a key technical resistance level.
• Near term, the cross is upward biased and could extend its rally if it reclaims the 100, 200, and 50-DMAs.
• A drop below 0.8600 would confirm the downtrend remains intact.

The EUR/GBP advances to an eight-day high of 0.8623 but remains bearish in the medium term after news from the UK showed its economy contracted for the second time in the year, as data revealed. Hence, the cross is trading at 0.86100 after jumping from a daily low of 0.8583, a gain of 0.21%.

The daily chart depicts the downtrend remains intact, but if EUR/GBP buyers reclaim the 100-day moving average (DMA) at around 0.8638, that could pave the way to challenge the 200-DMA at 0.8663. further upside is seen above that level, with the 50-DMA at 0.8660, and expect an upside move to 0.8700.

On the other hand, if the pair slides below the 0.8600 figure, that could open the door to retesting the December 11 swing low of 0.8549, ahead of falling toward the year-to-date (YTD) low of 0.8492.

EUR/GBP Price Analysis – Daily Chart

EUR/GBP Technical Levels