On Friday, EUR/GBP managed to climb above 0.8400, halting its recent downward trend. However, analysts warn that the uptick may be temporary as sellers pause after a series of losses.
Technical indicators, such as the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD), suggest that the bearish trend is still intact. The RSI hovers near oversold levels, while the MACD shows continued selling pressure with red bars.
Looking ahead, the pair could face support at 0.8450, with resistance at 0.8500. Despite the lack of strong bullish momentum, there is a possibility of a bullish push driven by fundamental factors. However, from a technical standpoint, the outlook remains bearish with the pair having lost over 1% in August.
EUR/GBP Daily Chart Analysis
Upon analyzing the daily chart for EUR/GBP, it is evident that the pair is currently in a consolidation phase above the 0.8400 level. The recent uptick may be short-lived, given the lack of strong bullish signals from technical indicators. Traders should closely monitor key support and resistance levels for potential trading opportunities in the coming sessions.