EUR/GBP Price Analysis: 200-HMA tests bounce off weekly channel’s support

• EUR/GBP consolidates the previous day’s loses inside a bullish chart pattern.
• Key HMA tests corrective pullback but bears need conviction.

EUR/GBP picks up bids to 0.8578 heading into Monday’s European session. In doing so, the cross-currency pair bounces off a one-week-old rising channel’s support line but stays below 200-HMA.

As the MACD line teases signal line cross-over, the EUR/GBP bulls are up for battling the 200-HMA level of 0.8580. However, any further upside needs to regain the 0.8600 psychological magnet to convince buyers.

Following that, further upside to the stated channel’s upper line near 0.8620 can’t be ruled out.

Alternatively, a downside break of 0.8570 could recall the EUR/GBP sellers targeting the 0.8500 threshold.

During the fall, June 23 low near 0.8540 may offer an intermediate halt.

Overall, EUR/GBP remains on the front foot for the short-term but the medium-term recovery hopes can gain momentum on the clear break above the 0.8600 round figure, comprising a descending trend line from May 25.

EUR/GBP hourly chart

Trend: Recovery expected