Technical Analysis – EURGBP bullish after hitting a new eight-week high by XM

EURGBP is currently up from the day’s open. Should it close higher, it will mark the fourth straight day of advances for the pair which set a new eight-week high yesterday.

Looking at the Ichimoku analysis, the Tenkan-sen line (red) has recently crossed above the Kijun-sen (blue). This is a positive alignment that’s generally perceived as a bullish near-term signal. The RSI indicator reinforces this signal as it is in bullish territory, well above the 50 neutral mark (at 62).

The 0.87 level could serve as a psychological barrier to the upside, while a break above this level would shift focus to the mid-January seventeen-week high as another important resistant point.

On the downside, the cloud top at 0.8610 could serve as support. A breach of this level would shift attention to the cloud bottom at 0.8577. The 50-day moving average (MA), currently at 0.8569, would be eyed next as another support point if the price continues heading down.

Regarding the medium-term picture, it is currently bullish as well as the price has moved above both the 50- and 200-day MAs.

Overall, the pair is bullish in both the short- and medium-term.

Source: www.xm.com