EUR/GBP moves higher to near 0.8550 followed by a resistance zone around the nine-day EMA

• EUR/GBP edges higher toward the resistance zone around the nine-day EMA.
• A break above the 23.6% Fibonacci retracement level at 0.8579 could lead the pair to reach a weekly high at 0.8584.
• A break below the major support at 0.8550 could push the pair to retest January’s low at 0.8536.

EUR/GBP moves in an upward direction, inching higher to near 0.8560 during the European session ahead of the European Central Bank’s (ECB) interest rate decision. The area around the nine-day Exponential Moving Average (EMA) at 0.8570 aligned with the 23.6% Fibonacci retracement level at 0.8579 could act as a resistance zone.

The crossover above the resistance zone could create a bullish sentiment for the EUR/GBP pair. It could attempt to approach the weekly high at 0.8584 followed by the psychological barrier at 0.8600 level and 38.2% Fibonacci retracement level at 0.8606.

The technical analysis of the EUR/GBP cross shows that the Moving Average Convergence Divergence (MACD) line is situated below the centerline and exhibits a divergence below the signal line. This configuration suggests a potential bearish momentum for the pair.

Additionally, to validate the downward trend in the EUR/GBP cross, traders can consider the 14-day Relative Strength Index (RSI). The RSI, located below the 50 mark, further confirms the bearish sentiment in the market. These technical indicators collectively suggest a prevailing negative bias for the pair.

On the downward, the major level at 0.8550 appears as the immediate support for the EUR/GBP cross. A collapse below the major support could put downward pressure on the pair to retest January’s low at 0.8536 followed by the psychological support at 0.8500 level.

EUR/USD: Daily Chart