EUR/GBP Price Analysis: Bulls attempt recovery and clear daily losses from multi-year lows

EUR/GBP attempts to recover from the recent pullback to lows since April 2022.
RSI indicates buying pressure is recovering, while MACD shows flat buying pressure.
As long as the cross remains below the 20-day SMA, the short-term outlook will be negative.

Patricio Martín FXStreet

In Friday's session the EUR/GBP mildly rose to 0.8330 after falling to multi-year lows around 0.8300.

The Relative Strength Index (RSI) is currently at 44, suggesting that buying pressure is recovering. The RSI is in the negative area, but the slope is rising, indicating that buying pressure may be gaining strength. The Moving Average Convergence Divergence (MACD) is suggesting that buying pressure is flat. The MACD histogram is green and flat, indicating that buying pressure is not strong, but it may be starting to increase. That being said, the short-term bias remains bearish.

EUR/GBP daily chart

Despite recovering, buying traction is weak, and the pair might retest the 0.8300 support. In case of being rejected once again it might trigger an upwards consolidation with the 20-day Simple Moving Average (SMA) 0.8350 being the nearest resistance.

Author

Patricio Martín

FXStreet

Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.

GBP/USD slides below 1.3250 after failing to break through 23.6% Fibo

The GBP/USD pair meets with a fresh supply during the Asian session on Wednesday and moves away from a nearly two-week high around the 1.3275 region, touched the previous day. Spot prices currently trade around the 1.3235 zone, down 0.20% for the day, as traders look to speeches from Bank of England Governor Andrew Bailey and Federal Reserve Chair Kevin Warsh for a fresh impetus.

EUR/USD keeps losses near 1.1400 after soft Eurozone inflation data

EUR/USD keeps the offered tone intact near 1.1400 in European trading on Wednesday, pressured by softer Euronze and German inflation readings and receding bets for aggressive tightening by the European Central Bank (ECB). Traders will take more cues from the US Manufacturing PMI due later in the day.

Gold stays in red below $4,000, awaits Warsh's speech

Gold remains under selling pressure below $4,000, in the red for the third straight day on Wednesday. The Iran uncertainty and Fed hike bets support the USD, weighing on the commodity. Traders now look to Fed Chair Warsh's speech and the US data for a fresh impetus.

ISM Manufacturing PMI expected to signal continued expansion in the US

Attention shifts to Wednesday’s release of the June ISM Manufacturing Purchasing Managers Index, one of the most closely followed indicators of activity in the US manufacturing sector and an important barometer of the broader economy. Markets expect the headline index to remain unchanged at 54.

Kevin Warsh isn't expected to say much in Sintra: That's exactly why markets will listen

Financial markets could find an important catalyst in the enchanting, fairytale-like landscape of Sintra this week. The European Central Bank Forum will, as it does every year, gather the crème de la crème of central banks. The new boss at the Federal Reserve, who has clearly said that the Fed should stop explaining everything, will need to talk – and traders should listen.

Just like Fed, is BoJ’s independence under threat?

When talking about central bank independence, most of the focus has been on Donald Trump’s pressure on the Federal Reserve. But a similar story, a quieter one for now, seems to be happening on the other side of the Pacific: Japan’s government may be testing the Bank of Japan’s independence.