EUR/GBP Price Analysis: Euro holds bullish tone while drifting near 0.8500
- EUR/GBP trades near the 0.8500 zone after slipping modestly in Thursday’s session.
- Bullish trend remains intact despite mixed momentum signals.
- Supportive long-term averages contrast with short-term resistance capping upside.
The EUR/GBP pair saw slight weakness on Thursday, trading near the 0.8500 zone after the European session. Despite today’s marginal drop, the overall structure remains supportive of a bullish bias, backed by a firm base of longer-term moving averages. Short-term indicators, however, show conflicting signals, with momentum fading even as the broader trend holds steady.
From a technical standpoint, EUR/GBP is leaning bullish overall. The Relative Strength Index remains neutral near the midpoint, suggesting no extreme conditions. The MACD currently delivers a sell signal, indicating slowing momentum, while the Stochastic %K has dropped into oversold territory, flashing a potential buy setup. The Commodity Channel Index also sits neutral, adding to the mixed short-term picture.
The structural strength comes from the moving averages. The 50-day Exponential and Simple Moving Averages sit well below current prices and continue to point upward, reinforcing the broader bullish setup. In contrast, the 20-day SMA — positioned slightly above spot — may act as a short-term ceiling. Meanwhile, the 100-day and 200-day SMAs remain firmly bullish, continuing to provide a strong foundation for buyers.
Support is seen at 0.8478, followed by 0.8462 and 0.8434. Resistance stands at 0.8492, 0.8497, and 0.8516.
Daily Chart
Author
Patricio Martín
FXStreet
Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.
