EURGBP has formed higher lows connected by a rising trend line on its hourly time frame. Price might be in for another pullback to this support zone as it finds resistance just below the .8800 handle.

The Fibonacci retracement tool shows where more buyers might be waiting to join the uptrend. The 61.8% level is closest to the trend line around the .8685 mark and dynamic inflection points at the moving averages.

A shallow pullback could already find buyers at the 38.2% Fib around .8725 or the 50% level near the .8700 major psychological mark and former resistance zone. If any of these levels hold as support, EURGBP could resume the climb to the swing high or higher.

Stochastic is still heading lower to show that there is some bearish pressure in play, so the correction could keep going for a bit longer. RSI has more room to move south, so EURGBP could follow suit until oversold conditions are met.

EURGBP could take its cue from the BOE decision this week, as the central bank is under strong pressure to hike interest rates. Recall that the UK CPI released recently reflected strong inflationary pressures while the retail sales report signaled that the consumer sector is reeling from the rising cost of living.

Later in the week, the euro could get fresh catalysts from the PMI readings from its top economies. Another set of small declines is eyed, though, so there could be some downside for the shared currency. However, stronger than expected results would reflect resilience in the manufacturing and services sectors of Germany and France, likely leading to more gains for the euro.

Apart from all that, risk sentiment related to the central bank events throughout the week might also impact this currency pair.