EUR/GBP Analysis: Technical Indicators Point to Decline in Buying Pressure
The EUR/GBP pair experienced a 0.28% rise to 0.8450 on Tuesday, only to retrace by 0.49% on Wednesday, signaling a mixed technical outlook. Let’s dive into the details:
The RSI and MACD Indicators
- Relative Strength Index (RSI): The RSI currently stands at 43, indicating a rise in selling pressure. The negative terrain and descending slope further support this view.
- Moving Average Convergence Divergence (MACD): The MACD histogram, although still in the green, is decreasing, signaling a decrease in buying pressure.
Price Movements and Range
While the EUR/GBP has been fluctuating within a narrow range recently, Wednesday’s decline suggests ongoing selling pressure. The pair remains trapped between 0.8420 and 0.8460.
EUR/GBP Daily Chart Analysis
Future Outlook
Considering the technical indicators and recent price action, the future direction of the EUR/GBP is uncertain. Here are the potential scenarios:
- If the pair breaks above the immediate resistance at 0.8460, it could target levels of 0.8480 and 0.8500.
- On the other hand, a break below 0.8420 could lead to further downside potential towards 0.8400 and 0.8380.
Stay tuned for more updates on the EUR/GBP pair as market conditions evolve.