EUR/GBP Price Analysis: Mixed technical outlook emerges as buying pressure retreats


  • The RSI and MACD indicate a decline in buying pressure.
  • The pair remains locked in a sideways range between 0.8420-0.8460.
  • The cross cleared most of Tuesday’s gains.

Tuesday's 0.28% rise to 0.8450 in the EUR/GBP has retraced due to the 0.49% decline on Wednesday. The latest price action and technical indicators paint a mixed technical outlook.

The EUR/GBP's price movements have fluctuated within a narrow range in the last sessions. Yet,  Wednesday's signal ongoing selling pressure. The Relative Strength Index (RSI), which currently stands at 43, suggests that selling pressure is rising. The RSI's negative terrain and descending slope further reinforce this view. Furthermore, the Moving Average Convergence Divergence (MACD) histogram, while still green, is showing a decrease, suggesting that the recently gained buying pressure is easing.

EUR/GBP daily chart

Based on the mixed technical outlook, the EUR/GBP's future direction is uncertain. A break above the immediate resistance level of 0.8460 could potentially target 0.8480 and 0.8500. Conversely, a break below 0.8420 could open up further downside potential toward 0.8400 and 0.8380.

 

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