In the latest session, the EUR/GBP pair experienced a breakout, resulting in a 0.40% increase to reach around 0.8450. While this is a positive sign for bulls, there is still more work to be done to confirm a full recovery.
Key technical indicators are pointing towards a potential shift in momentum towards positive territory. The Relative Strength Index (RSI) has climbed back towards the 50 level, indicating a recovery in buying pressure. Additionally, the Moving Average Convergence Divergence (MACD) histogram is showing decreasing red bars, suggesting a possible reversal in trend.
Despite these positive signals, caution is advised as recent price action has been choppy, indicating consolidation for the pair. The key support level to watch is at 0.8400, while the next resistance level stands at 0.8460, aligned with the 20-day Simple Moving Average (SMA). A successful break above this level could confirm a sustained recovery for the EUR/GBP pair.
EUR/GBP Daily Chart Analysis
