EUR/GBP Price Analysis: Holds bullish tone despite minor decline
- EUR/GBP trades near the 0.8600 zone after easing modestly post-European session.
- Momentum indicators send mixed signals, but moving averages remain aligned to the upside.
- Support rests at 0.8577, 0.8570, and 0.8546; resistance is seen near 0.8591.
The EURGBP pair is exhibiting a bullish overall signal, currently trading around the 0.8600 area after slipping slightly during Tuesday’s session following the European close. The pair remains comfortably mid-range between the day’s low of 0.8569 and the upper boundary near 0.8611, suggesting consolidation within an upward trend.
Technically, momentum indicators are mixed. The Relative Strength Index (RSI) holds neutral near the 58 level, while the MACD continues to print a buy signal. However, the Stochastic RSI is also neutral, and the Momentum indicator tilts slightly bearish, hinting at some hesitation among buyers in the short term.
Still, the broader technical backdrop remains constructive. The 20-day, 100-day, and 200-day Simple Moving Averages (SMAs), located at 0.8506, 0.8369, and 0.8386 respectively, are all pointing upward. Bullish confirmation also comes from the 10-day and 30-day Exponential Moving Averages (EMAs), holding above 0.8569 and 0.8490, reinforcing near-term strength.
Support is seen at 0.8577, followed by 0.8570 and 0.8546. On the upside, resistance is expected around the 0.8591 area. The overall bias remains positive so long as price holds above key averages heading into the Asian session.
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.
