EUR/GBP Price Analysis: Turns sideways around 0.8850 post correction from three-month high

• EUR/GBP is facing barricades while crossing the 0.8878-0.8882 hurdle.
• The 20-EMA at 0.8853 is providing support to the Euro bulls.
• A slippage of the RSI (14) into the 40.00-60.00 range indicates a loss in the upside momentum.

The EUR/GBP pair is displaying back-and-forth moves around 0.8850 in the Asian session. The asset corrected after printing a fresh three-month high at 0.8885 on Wednesday. For the past eight trading sessions, the cross is struggling to extend upside above the critical resistance of 0.8880 comfortably.

The cross is expected to display a power-pack action after the release of the United Kingdom manufacturing activities data that comprises Manufacturing Production, Industrial Production, and Gross Domestic Product (GDP) data, which is scheduled for Friday.

On an hourly scale, EUR/GBP has sensed barricades while attempting to cross the supply zone placed in a narrow range of 0.8878-0.8882. After a corrective move, the 20-period Exponential Moving Average (EMA) at 0.8853 is providing support to the Euro bulls. Upward-sloping 50-EMA at 0.8844 adds to the upside filters.

The Relative Strength Index (RSI) (14) has slipped into the 40.00-60.00 range after failing to sustain into the bullish range of 60.00-80.00, which indicates a loss in the upside momentum.

For a fresh upside, the cross needs to overstep a three-month high at 0.8885, which will drive the asset towards September 29 high at 0.8979, followed by the psychological resistance at 0.9000.

On the flip side, a slippage below January 9 low at 0.8767 will drag the asset toward November 18 high at 0.8739. A downside move below the latter will further push the cross lower to December 19 low at 0.8690.

EUR/GBP hourly chart