EUR/GBP Price Analysis: Facing rejection near 0.8720, bullish potential remains intact

• EUR/GBP is surging higher on Friday in the European session.
• However, bulls remain defensive near the 0.8720 region.
• Positive MACD points to further upside gains.

The EUR/GBP cross extends Thursday’s gains and is accumulating solid gains in the European session. 

At the time of writing, EUR/GBP is trading at 0.8715, up 0.43% on the day.

EUR/GBP 4-hour chart

On the 4-hour chart, the cross has been hovering near the 0.8720 area, a break of the mentioned threshold will further reinforce the bullish trend for the cross. Moving higher,  the first stoppage appears near February 15 highs at 0.8740, and then near the 0.8790 horizontally-placed resistance zone.

The Moving Average Convergence Divergence (MACD) indicator reads above the midline, which reaffirms that the upside momentum will continue in the near future. The prices would then be all set to touch February’s high near 0.8845.

On the flip side, if prices move to the downside, then it would locate the first stop near the 20-hour Simple Moving Average (SMA) placed at 0.8680. Afterward it could meet the 23.6% Fibo retracement near 0.8650. In the absence of an upside trigger, the price is bound to move toward a 0.8630 horizontally-placed support area.