EURGBP has been moving sideways between support around the .8250 minor psychological mark and resistance at the .8450 level. Price is bouncing off the resistance and could be due for a move back to nearby support levels next.

However, the 100 SMA just crossed above the 200 SMA to indicate that the path of least resistance is to the upside or that a bullish break could be possible. If that happens, EURGBP could be in for a rally that’s the same height as the range or 200 pips.

Stochastic looks ready to turn south, though, so a pickup in selling pressure could be seen. If that’s the case, EURGBP could fall back to the middle of the range around the dynamic support at the moving averages or .8350. Stronger selling pressure could take it back to the range bottom again.

RSI also seems to be on the move down to show that sellers have the upper hand, and the oscillator has plenty of room to slide before reaching the oversold region to reflect exhaustion.

EURGBP could take cues from the upcoming BOE decision, as another split between dovish and hawkish members is eyed. The central bank is widely expected to keep rates on hold for the time being, but a couple of members are likely to vote for a cut. Recall that two dovish members called for a much larger interest rate cut in their earlier meeting.

Meanwhile the euro could be pushed around by overall market sentiment in the absence of top-tier data points from the region. Note that worsening trade tensions between the EU and the US could also mean downside for the shared currency, especially if either or both countries step up their reciprocal tariffs.

Easing trade tensions, on the other hand, could spur a bounce for the euro. After all, improving political developments are also keeping the currency supported.