The EUR/GBP has been grinding recently, having just bounced off monthly support. Long-term trading above the 200-SMA and an impending bull cross on the MACD favor buyers.

Before the monthly high, a weekly resistance line restrains further upward movement. In the early hours of Monday morning in London, the EUR/GBP is trading close to an intraday high at 0.8850. By doing this, despite a fading rebound off the monthly support line, the cross-currency pair maintains its position above the 200-Simple Moving Average (SMA).

It’s important to note that the quotation has successfully traded above the essential moving average. This, together with the imminent bull cross on the MACD and the stable RSI (14), keeps buyers optimistic.

However, a falling trend line for one week limits the EUR/GBP pair’s immediate upside to just over 0.8870.

After that, many obstacles at 0.8910 and the round number 0.8900 may serve as the final line of defense for the pair’s buyers before the quote is directed toward the monthly high of about 0.8980.

It should be noted that the EUR/GBP run-up over 0.8990 will need confirmation from the psychological magnet around 0.9000 to go for the previous annual high at 0.9250.

The pair’s short-term downside is instead constrained by the 200-SMA and an ascending trend line from January 19, which are close to 0.8835 and 0.8828, respectively.

The pair’s January-February upside of 61.8% Fibonacci retracement level and the late January swing bottom, located respectively at 0.8820 and 0.8760, will be the primary target after that.

Unless it offers actual trading below 0.8828, EUR/GBP is expected to stay stronger overall.

EUR/GBP 4-hour chart