EUR/GBP bulls show resilience and trim daily losses
- EUR/GBP shows mild losses at 0.8630, after bottoming at a low of 0.8600.
- The daily chart delivers mixed signals with a bearish RSI and bullish MACD.
- Recently, the four-hour chart indicators gained ground, and bulls are in command.
On Tuesday, the EUR/GBP was sighted trading at 0.8630, enduring minor losses after bottoming at a daily low of 0.8600. The daily scene appears somewhat neutral to bearish, but there's compelling evidence of bulls gaining some footing. Notably, the four-hour indicators have amped up, implying momentum on the buyers' side.
The indicators on the daily chart suggest a subdued, bullish sentiment. Despite the Relative Strength Index (RSI) trending downwards in the negative zone, the Moving Average Convergence Divergence (MACD) shows rising green bars, suggesting an increasing buying momentum. Meanwhile, the pair's position in relation to its 20-day Simple Moving Average (SMA) adds to this bullishness as it maintains its position above this key level. However, the asset is still lagging behind the 100 and 200-day SMAs, indicating the bear's overall control is intact on the broader scale.
From a narrower perspective, the four-hour chart demonstrates that the bulls are steadily gaining ground. The Relative Strength Index (RSI) shows a positive slope within the bullish zone, while the Moving Average Convergence Divergence (MACD) also displays rising green bars, signaling a growing buying momentum. This mounting bullish force indicates an advancing trend in the short-term, despite the conflicting signals from the daily chart.
Support Levels: 0.8620 (20-day SMA), 0.8600, 0.8570.
Resistance Levels: 0.8640 (100-day SMA), 0.8660 (200-day SMA), 0.8700.
EUR/GBP daily chart
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Author
Patricio Martín
FXStreet
Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.
