EUR/GBP Price Analysis: Neutral to bearish bias, eyes on crossover
- EUR/GBP declined to 0.8525 during Tuesday's session, within an ongoing range-bound movement.
- Indicators project conflicting cues but overall suggest a steady selling pressure.
- The cross is about to close a bullish crossover between the 20 and 100-day SMA which would be a buy signal.
In Tuesday's session, the EUR/GBP pair modestly fell to 0.8525, continuing its range-bound movement. Technical indicators provide contradictory signals, suggesting a neutral outlook with a slight bearish bias. On the positive side, a bullish catalyst might be a crossover between the 20 and 100-day Simple Moving Averages (SMA) at the 0.8500 level.
The Relative Strength Index (RSI) remains flat at 54, indicating moderate selling pressure. However, the Moving Average Convergence Divergence (MACD) is forming rising red bars, pointing to growing bearish momentum and the possibility of a strong reversal. Volume patterns have been mixed, with lower volume in recent sessions compared to earlier spikes in the month.
EUR/GBP daily chart
The EUR/GBP pair has been consolidating within the range of 0.8500-0.8550. A breach above 0.8550 could signal a bullish trend, while a drop below 0.8500 might increase the likelihood of continued downward movement. Key support levels to monitor include 0.8450 and 0.8400, while resistance levels to consider include 0.8580 and 0.8600.
Author
Patricio Martín
FXStreet
Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.
