EUR/GBP Price Analysis: The bullish barrier is located in the 0.8750/0.8755 area

• EUR/GBP gains ground near 0.8745 following weak UK inflation data.
• The cross remains above the 50 and 100 EMAs on the 4-hour chart; The RSI indicator is in a bullish zone above 50.
• The 0.8750-0.8755 zone acts as an immediate resistance level; the initial support level is located at 0.8721.

The EUR/GBP cross extends its bullish trend during the first hours of the European session on Thursday. Wednesday’s bearish UK Consumer Price Index (CPI) data weighs on the British Pound (GBP) and acts as a tailwind for the EUR/GBP cross. Furthermore, the Pound’s rise could be limited by the possibility of the Bank of England (BoE) cutting interest rates soon. At the time of writing, the cross is trading around 0.8745, up 0.09% on the day.

From a technical point of view, EUR/GBP remains above the 50 and 100 EMAs on the four-hour chart, highlighting that the path of least resistance for EUR/GBP GBP is on the rise. Additionally, the Relative Strength Index (RSI) is in bullish territory above 50, providing support to buyers for the time being.

The 0.8750-0.8755 zone acts as an immediate resistance level for the crossover. The mentioned level is the confluence of the upper boundary of the Bollinger Bands and a November 10 high. A decisive break above this level will lead to a recovery to 0.8835 (May 3 high). Further up, the additional bullish filter is placed at 0.8865 (April 25 high).

On the downside, the initial support level for the cross lies near the November 3 high at 0.8721. The next support level will emerge near the 100 EMA at 0.8710. Any selling below this last level will cause a drop to the 0.8695-0.8700 area, which represents the lower limit of the Bollinger Bands and a round level.

EUR/GBP four-hour chart