EUR/GBP Price Forecast: The first upside barrier emerges above 0.8550, Eurozone GDP data in focus

• EUR/GBP strengthens 0.8435 in Friday’s Asian session.
• The cross keeps the bearish vibe below the 100-period EMA, but RSI indicator shows further upside cannot be ruled out. 
• The immediate resistance level emerges at 0.8440; 0.8417 acts as an initial support level. 

The EUR/GBP cross trades in positive territory for the third consecutive day around 0.8435 during the Asian session on Friday. The Eurozone Gross Domestic Product (GDP) for the second quarter (Q2) will be closely watched, which is estimated to grow 0.3% QoQ and 0.6% YoY in the second quarter (Q2). 

According to the 4-hour chart, the negative outlook of EUR/GBP remains intact as the cross holds below the key 100-period Exponential Moving Averages (EMA). However, the further upside cannot be ruled out as the Relative Strength Index (RSI) points higher above the midline near 56.0. 

The first upside barrier for EUR/GBP emerges at 0.8440, the upper boundary of the Bollinger Band. Further north, the next hurdle is seen at 0.8457. A decisive break above this level will see a rally to the 0.8500 psychological level. 

On the flip side, the initial support level is located at 0.8417, the lower limit of the Bollinger Band. The potential contention level to watch is the 0.8400-0.8405 region, representing the round figure and the low of September 3. The additional downside filter to watch is 0.8383, the low of July 17.

EUR/GBP 4-hour chart