EUR/GBP Price Analysis: Buyers make a stride, outlook remains negative
- EUR/GBP remains range-bound, displaying a sideways trend since Monday.
- Buying pressure has shown signs of recovery, but momentum remains weak.
- With the pair below the 20-day SMA, the short-term outlook is negative.
The EUR/GBP pair continues to consolidate its position, experiencing a mild uptick in Wednesday's session to 0.8330. This movement, however, has not broken the pair's recent trading range, which remains between 0.8310 and 0.8340.
The Relative Strength Index (RSI) indicates some recovery in buying pressure, rising to 43, but it remains still far from 50. The Moving Average Convergence Divergence (MACD) exhibits flat conditions, with the histogram in the negative zone showing no significant selling pressure.
Despite the mixed signals from technical indicators, the outlook for EUR/GBP remains overall negative for the short term. Should buying pressure fail to materialize, the pair could return to support at 0.8300. A break below this level could trigger further declines. Conversely, a move above 0.8340 could indicate a shift towards recovery.
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.
