• EUR/GBP retreats from two-month tops, pressured around intraday low of late.
• Firmer Momentum, sustained break of 200-DMA directs bulls to multi-day-old resistance line.
• Fortnight-old support line adds to the downside filters.

EUR/GBP stays pressured around intraday low surrounding 0.8580, consolidating the biggest daily gains since late September. The cross-currency pair crossed the 200-DMA the previous day to mark a notable rally.

The latest pullback seems to direct the quote back to the aforementioned key SMA, near 0.8560 at the latest, but any further downside isn’t backed by an upward sloping Momentum line.

Even if the quote breaks the 200-DMA level of 0.8560, an ascending trend line from November 24, at 0.8510 by the press time, also challenges the EUR/GBP sellers.

In a case where the pair drops below 0.8510, the 0.8500 threshold and the monthly low of 0.8488 will probe the bears before directing them to August month’s bottom around 0.8450.

Meanwhile, further upside will aim for the 0.8600 round figure and then to the descending resistance line from late April, near 0.8630.

It’s worth noting that the EUR/GBP rally beyond 0.8630 will reverse the downtrend and propel the quote towards September’s high close to 0.8660.

EUR/GBP: Daily chart

Trend: Further upside expected