In Tuesday’s trading session, the EUR/GBP pair saw a slight uptick to 0.8440, signaling a mixed technical outlook. Despite a brief respite for bears after a 1% drop in August, the overall trend remains bearish.
The Relative Strength Index (RSI) is below 50 at 44, with a slightly neutral slope, hinting at a slowdown in bearish momentum. The Moving Average Convergence Divergence (MACD) is showing decreasing red bars, indicating a weakening selling pressure.
Currently, the EUR/GBP pair is consolidating above 0.8400, acting as immediate support post the August decline. Resistance is seen at 0.8440, and a breakout above this level could pave the way for further advances towards 0.8450 and 0.8470.
EUR/GBP Daily Chart
Analysis:
The EUR/GBP pair is currently at a critical juncture, with the technical indicators showing a mix of bearish and bullish signals. While the overall trend remains bearish, the recent slowdown in selling pressure could indicate a potential reversal in the near future. Traders should keep a close eye on the 0.8440 resistance level for any breakout opportunities.