EUR/GBP technical analysis: 2-week old support-line limits immediate downside

• U-turn from immediate support-line favors upside to the nearby trend-line resistance.
• Overall sentiment remains positive till the pair stays above 0.8810.

Following its bounce from the near-term support-line, the EUR/GBP pair currently trades around 0.8820 during the early Asian session on Thursday.

With this, the quote is likely running upwards to 0.8830 ahead of confronting a week-long trend-line resistance, near 0.0.8840.

If prices manage to clear 0.8840, current month high near 0.8851 and late-January tops around 0.8865/70 may gain buyers’ attention.

Alternatively, a downside break of 0.8810 mark comprising an upward sloping trend-line since mid-May and 23.6% Fibonacci retracement of latest up-move can trigger the pair’s fresh declines to 0.8790.

Given the bears’ dominance below 0.8790, 0.8750 and 61.8% Fibonacci retracement of 0.8740 could mark their presence on the chart.

EUR/GBP 4-Hour chart

Trend: Bullish