• EUR/GBP reverses the previous day’s pullback from two-week top.
• Key SMAs challenge buyers inside bullish chart formation, RSI (14) hints at further upside.
• Five-week-old trend line is the key hurdle, bears can refresh monthly low by breaking 0.8500.

EUR/GBP grinds higher around 0.8530 as it refreshes its intraday top while reversing the previous day’s pullback from a fortnight high heading into Thursday’s European session.

In doing so, the cross-currency pair remains inside a weekly ascending trend channel while poking the 100-SMA.

Given the first RSI (14), not oversold, as well as the sustained trading inside the weekly bullish channel, the EUR/GBP prices are likely to remain firmer.

That said, the 100-SMA and the 200-SMA could restrict immediate upside moves around 0.8525 and 0.8555 in that order.

In a case where EUR/GBP manages to rise past 0.8555, it can aim for a downward sloping resistance line from June 15, around 0.8630 by the press time.

Alternatively, pullback moves need to defy the bullish channel pattern by breaking the 0.8500 support.

Following that, the recent low of 0.8403 and the May month low of 0.8393 will be crucial for the EUR/GBP bears to watch.

Overall, EUR/GBP is expected to keep the bullish bias intact but upside momentum could witness multiple hurdles.

EUR/GBP: Four-hour chart

Trend: Further recovery expected