EUR/GBP Price Analysis: Stays directed towards 0.8600

• EUR/GBP funnels down the breakout of weekly triangle, remains sidelined of late.
• Ascending trend line from mid-August, sustained trading beyond 200-SMA favor bulls.

EUR/GBP treads water around 0.8570 as European traders brace for Monday’s bell. In doing so, the cross-currency pair seesaws inside a one-week-old symmetrical triangle formation.

Although the sluggish MACD signals portray the pair traders’ indecision, firmer RSI and sustained trading beyond 200-SMA, not to forget an ascending trend line from August 16, keeps the buyers hopeful.

However, a clear upside break of the stated triangle’s resistance line, near 0.8590, becomes necessary for the bulls to tighten the grips.

Following that, the monthly high around 0.8600 and early July tops surrounding 0.8615 could entertain the EUR/GBP buyers ahead of directing them to the last month’s peak of 0.8670.

On the flip side, the stated two-week-old support line and the triangle’s lower line, respectively around 0.8565 and 0.8560, restrict short-term declines of the pair.

In a case where the EUR/GBP prices drop below 0.8560, a convergence of 200-SMA and 38.2% Fibonacci retracement of August 10–23 upside, near 0.8535, becomes a tough nut to crack for the pair sellers to break.

Overall, the EUR/GBP pair grinds higher but needs a trigger to rally further towards the north.

EUR/GBP: Four-hour chart

Trend: Further upside expected