EUR/GBP Price Analysis: Bullish momentum slows near 0.8450 resistance
- EUR/GBP edges higher to 0.8450 on Wednesday, testing the upper boundary of its trading range.
- RSI shows slightly overbought conditions but maintaining a positive bias.
- MACD histogram prints shrinking green bars, indicating waning bullish momentum.
The EUR/GBP pair advanced modestly on Wednesday, climbing to 0.8450 as it continues to oscillate within a defined range of 0.8440 to 0.8475. Despite the upward movements, momentum appears to be softening as the pair nears its resistance threshold.
Technically, the Relative Strength Index (RSI) remains at 69, in positive territory, reflecting slightly overbought conditions that could cap further gains in the short term. Meanwhile, the Moving Average Convergence Divergence (MACD) histogram shows shrinking green bars, a signal that bullish momentum is losing steam. These indicators suggest that while the overall trend remains upward, immediate upside potential may be limited.
Traders will monitor whether EUR/GBP can decisively break above the 0.8475 resistance, which could pave the way for a move toward 0.8500. Alternatively, a reversal from current levels may prompt a retest of the 0.8440 support, with a break lower exposing the 0.8415 zone as the next key level to watch.
EUR/GBP daily chart
Author
Patricio Martín
FXStreet
Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.
