• EUR/GBP consolidates weekly gains ahead of key central bankers’ speeches.
• Bullish chart formation, upbeat MACD signals keep pair buyers hopeful.
• 200-SMA adds to the upside filters as ECB versus BoE play appears less interesting.

EUR/GBP aptly portrays the pre-event anxiety as it pares the weekly gains with mild losses around 0.8595 heading into Wednesday’s European session.

In doing so, the cross-currency pair reverses from the confirmation point of the Inverted Head-and-Shoulders (H&S) bullish chart pattern before speeches from Bank of England (BoE) Governor Andrew Bailey and the European Central Bank (ECB) President Christine Lagarde.

That said, the bullish MACD signals also keep the EUR/GBP pair buyers hopeful.

However, the latest bullish consolidation may direct the quote toward 0.8570 while any further downside could lure bears and challenge the monthly low, as well as the yearly bottom, surrounding 0.8520.

In a case where the EUR/GBP breaks the 0.8520 level, a quick fall toward the 0.8500 threshold can’t be ruled out.

On the flip side, a clear upside break of the 0.8605 hurdle will confirm the inverted H&S bullish chart formation. However, the 200-SMA hurdle of 0.8620 may act as an additional upside filter for the bulls.

Following that, the late May swing high of around 0.8720 may prod the EUR/GBP bulls during the run-up aiming for the theoretical target of the inverse H&S, namely around 0.8730.

EUR/GBP: Four-hour chart

Trend: Further upside expected