EUR/GBP Technical Analysis: Continues sideways, capped by 20-day SMA
- Pair trades sideways within a narrow range, indicating indecisive market sentiment.
- RSI suggests increasing selling pressure, while MACD signals weakening bullish momentum.
- The pair remains below the 20-day SMA, indicating a bearish bias in the short term
EUR/GBP continues to trade within a constricted range, with limited price movements in recent sessions. The pair currently trades near 0.8340 having faced resistance at the 20-day SMA, maintaining a neutral bias.
Analyzing the technical indicators, the Relative Strength Index (RSI) has declined to 45, suggesting increasing selling pressure. The MACD, while still in positive territory, is decreasing, indicating weakening buying momentum. This confluence of signals points to a neutral to slightly bearish bias in the short term.
Support levels are seen at 0.8330, 0.8315, and 0.8300, while resistance levels stand at 0.8350, 0.8370, and 0.8400. In the near term, the pair is likely to continue trading within this range unless buyers manage to break above the 20-day SMA, thereby shifting the technical outlook more favorably.
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.
