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 the interest rates for the second time in a row.
The ECB is likely to stand pat while dismissing the inflationary concerns. The central bank divergence is likely to limit the bullish potential in the cross.
Technically, the EUR/GBP cross is making headways to recapture the bearish 21-Daily 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
However, the 14-day Relative Strength Index (RSI) remains below the midline, warranting caution for bulls.
Therefore, selling resurgence 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