Technical Analysis – EURGBP trades within tight channel
· EURGBP finds strong resistance at 50-day SMA
· Momentum oscillators hold below their mid-levels
EURGBP is trading within a narrow range of 0.8420-0.8460 over the last couple of weeks, remaining capped by the flat 50-day simple moving average (SMA) around the 0.8460 resistance.Technically, the RSI indicator is pointing south marginally beneath the 50 level; however, the MACD oscillator is holding above its trigger line beneath the zero line with weak momentum.
More downside pressures and a successful dive below the 0.8420 support as well as a break beneath the 0.8400 round number, the door would open for the two-year low of 0.8382. If there are steeper decreases the bulls may head towards the July 2022 bottom at 0.8340.
On the flipside, a rally beyond the 50-day SMA could take the market until the 200-day SMA at 0.8525 before testing the long-term downtrend line and the 0.8545 resistance. Moving higher, the 0.8590 and the 0.8620 levels are coming next to switch the outlook to a more positive one.
All in all, EURGBP has been neutral in the very short-term, but the broader picture remains bearish.Related Assets
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