EURGBP has formed higher lows and higher highs inside a rising channel on short-term chart, and it looks like support is holding again.

The pair could climb to the next upside targets from here, closing in on the mid-channel area of interest around .8590. Stronger bullish pressure could take EURGBP to the channel top at .8610 or higher.

The 100 SMA is above the 200 SMA to indicate that the path of least resistance is to the upside or that support is more likely to hold than to break. Price is trading below both moving averages, though, so these might hold as dynamic resistance.

Stochastic is starting to turn lower without reaching the overbought zone, hinting that sellers are eager to return. A break below the channel bottom at .8570 could confirm that a reversal from the uptrend is in order.

The upcoming ECB decision could determine where EURGBP is headed for the week, as a downbeat statement might lead to losses for the shared currency.

Note that updated economic forecasts are due, so any revisions to growth and inflation estimates would impact policy expectations. Many expect the ECB to clarify their taper timeline, especially since the PEPP is scheduled to end early next year. Reducing the size of their purchases could pave the way for a better transition to their regular QE program.

Refraining from disclosing their policy plans might mean some downside for the euro while a roadmap could bring in some gains. Policymakers might opt to wait until December to reach a decision, though.

There are no major reports due from the UK economy, so the pound could serve as a mere countercurrency for euro price action. Note, however, that the BOE might also be leaning towards reducing the size of its asset purchases in order to keep inflation in check.