EUR/GBP Is Moving to the Upside

Despite the signal that EUR/GBP might test the resistance at 0.8600, which coincides with the (MA)89 indicator on the daily time-frame, the pair could not quite reach that resistance before bouncing off 0.8577 and moving to the downside towards the support at 0.8300. Unsurprisingly, the pair bounced off 0.8300 as well, after forming a spinning top candlestick on the four-hour time-frame. Currently the pair is testing the resistance at 0.8435, and a breakout above that level will probably lead to a further move to the upside towards the next resistance level at 0.8530, which is the (MA)89 indicator on the four-hour time-frame. That said, the pair is still quite bearish and on the larger time-frames there is no signal for a reversal, so a breakout below 0.8300 and a further move to the downside is also quite possible.