Ella 
The EUR/GBP cross is gaining momentum above 0.8550 during the European morning on Thursday. The cross is currently trading around 0.8576, flat for the day.
The latest data on Thursday showed that German industrial production (IP) fell in tandem by 2.1% in July after falling 1.5% in the previous month (revised -1.5%). The monthly figure was a 0.8% decline, compared with a 1.4% decline in June and below expectations for a 0.5% decline. However, the pound weakened against the euro following dovish comments from Bank of England (BOE) Governor Andrew Bailey on Wednesday that the central bank was closer to ending its rate hike cycle.
From a technical point of view, the four-hour chart shows that EUR/GBP is in a downtrend channel since mid-June. That said, the path of least resistance for this cross is to the upside as EUR/GBP holds above the 50 and 100 hourly exponential moving averages (EMAs).
Key resistance for EUR/GBP is at 0.8600, a psychological round number mark and the August 28 high. The next hurdle to watch is 0.8626 (the upper boundary of the downtrend channel), then the 11th August high at 0.8670 and finally the 19th July high around 0.8700.
Conversely, initial support is seen at 0.8563 (50 hourly exponential moving average). The next downside stop is at 0.8540 (September 4 low). Further downside would see a test of 0.8524 (September 5 low). Key support lies at 0.8500, which is the lower limit of the downtrend channel and the psychological threshold.
Notably, the Relative Strength Index (RSI) and Moving Average Convergence/Divergence Index (MACD) are in bullish territory, supporting buyers for now.
