In Monday’s trading session, the EUR/GBP saw a slight increase to 0.8430 before encountering selling pressure and dropping back to the 0.8420 level. Technical indicators, including the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD), are signaling a bearish outlook for the pair. However, there is a possibility of sideways trading above the key support level of 0.8400 in the near future.
The RSI is currently near oversold levels at 37, with a flat slope indicating a lack of clear momentum. The MACD is also showing bearish signals with red bars, suggesting continued selling pressure. Despite this, decreasing volume in recent sessions indicates a potential slowdown in the selling momentum.
Looking ahead, the EUR/GBP could test support levels at 0.8400, 0.8380, and 0.8360, while facing resistance at 0.8430, 0.8450, and 0.8470 on the upside. Traders should monitor the 0.8400-0.8450 range for potential sideways movements.
EUR/GBP Daily Chart
Analysis: The EUR/GBP currency pair is currently showing signs of a potential recovery, but technical indicators suggest a bearish outlook in the near term. Traders should be cautious of the key support and resistance levels mentioned above to navigate their trading decisions. Overall, the pair may experience sideways movements in the coming sessions, providing both buying and selling opportunities for investors.