EUR/GBP Price Analysis: Bears ease their grip, buyers still remain weak
- Overall bearish outlook remains, RSI and MACD indicate short-term mixed momentum.
- Selling pressure is declining, indicated by decreasing red MACD bars.
- The 20-day SMA continues to be a strong resistance.
In Thursday's session, the EUR/GBP retreated and stands flat around 0.8440, showcasing a mixed technical outlook. Bears appear to be moderating their short-term bearish pressure, but the overall technical outlook remains bearish.
The Relative Strength Index (RSI) is currently at 44, within negative territory, and exhibits a flat slope, signifying a gradual recovery in buying momentum. The Moving Average Convergence Divergence (MACD) histogram is displaying decreasing red bars, indicating a decline in selling pressure. This mixed outlook suggests that the buying and selling forces are relatively balanced at the moment.
EUR/GBP daily chart
The EUR/GBP pair has been consolidating within a narrow range for the past few trading sessions, fluctuating between 0.8420 and 0.8450. This consolidation is indicative of a lack of clear directional bias in the near term. If the pair manages to break above the immediate resistance level of 0.8450 (20-day SMA), it could potentially target 0.8460 and 0.8470. Conversely, a break below 0.8420 could open up further downside potential below 08400.
Author
Patricio Martín
FXStreet
Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.
