EUR/GBP Price Analysis: Pair struggles below 100-day SMA despite mild gains
- EUR/GBP edges up to 0.8330 on Monday but remains below key resistance.
- Last week's failure to hold above the 100-day SMA continues to weigh on sentiment.
The EUR/GBP pair saw a mild uptick on Monday, rising to 0.8330, but remains under pressure as it struggles to reclaim the 100-day Simple Moving Average (SMA). Last week's inability to hold above this level further dampened sentiment, keeping the broader outlook tilted to the downside.
Technical readings suggest that momentum remains weak despite the recent rebound. The Relative Strength Index (RSI) has climbed to 44, signaling some buying interest but still residing in negative territory. Meanwhile, the Moving Average Convergence Divergence (MACD) histogram remains flat with green bars, indicating a lack of strong directional bias.
Unless EUR/GBP manages to reclaim the 100-day SMA, which is currently acting as resistance, further downside risks persist. Immediate support lies at 0.8300, with a break lower exposing 0.8275. On the upside, a decisive move above 0.8350 could provide the bulls with a chance to regain control and target 0.8380.
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.
