EUR/GBP Price Analysis: Consolidation on as the pair awaits directional cues

Source Fxstreet
  • The EUR/GBP cross faced rejection at the crucial 100-day SMA last week, signaling a potential shift in trend.
  • The cross might sideways within a range defined by the 100-day SMA and the 20-day SMA providing support.

The EUR/GBP cross has been exhibiting a sideways trend in recent trading sessions, consolidating within a narrow range. This consolidation phase is likely to continue until a decisive breakout occurs in either direction, providing further guidance on the cross's future trajectory. On Tuesday de cross mildly declined towards the 0.8380 area.

The Relative Strength Index (RSI) is at 55 indicating that buying pressure is declining as is in the positive area and has a mildly declining slope. The Moving Average Convergence Divergence (MACD) is green and decreasing, also suggesting that bullish momentum is waning. 

Overall, the technical indicators suggest that the EUR/GBP cross is in a neutral phase, with both bullish and bearish forces vying for control. A breakout from the current range between the 20 and 100-day Simple Moving Average (SMA) will provide further clarity on the cross's future direction. With some signs of bearish forces emerging, the 20-day SMA at 0.8350 might be set to recieve a visit in the near term.

EUR/GBP daily chart

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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