EURGBP is trending higher, showing higher lows connected by a newly-forming rising trend line on its 4-hour time frame. Price looks ready for another test of support that lines up with several inflection points.

In particular, the trend line coincides with the 50% Fibonacci retracement level , 100 SMA dynamic inflection point, and former resistance at the .8400 major psychological mark. A larger pullback could reach the 61.8% Fib that lines up with the 200 SMA and trend line support.

The 100 SMA is above the 200 SMA to confirm that the path of least resistance is to the upside or that the trend is more likely to resume than to reverse. If any of the Fib levels hold, EURGBP could make its way back up to the swing high near .8500 or higher.

Stochastic is still pointing down to show the presence of selling pressure, but the oscillator is nearing the oversold region to signal exhaustion among sellers. Turning back up would confirm that buyers are returning.

RSI has more room to slide, though, so price could follow suit while bearish momentum is in play. A break below the trend line could mark the start of a reversal from the uptrend.

There are no major reports due from the eurozone and UK today, but it’s worth noting that EU data came in mostly stronger than expected yesterday.

Although German retail sales and French consumer spending fell short of estimates, the rest of the mid-tier reports beat expectations. French and Italian preliminary CPI both turned out better than expected while the German unemployment change report came in line with estimates.

The region’s flash CPI readings are up for release today, and stronger figures might spur hopes of the ECB withdrawing stimulus sooner rather than later.