Technical Analysis – EURGBP lacks clear direction in short-term
EURGBP fails to recoup the negative gap
RSI ticks down but MACD stands above its trigger line
EURGBP is heading south after the pullback off the 20-day simple moving average (SMA) around 0.8465. The pair is moving sideways after the European elections and the negative gap that was posted back on June 10.
Technically, the momentum oscillators indicate mixed signals. The RSI is sloping down beneath the neutral threshold of 50; however, the MACD oscillator is holding above its trigger line beneath the zero level.
If prices continue to move lower, support should come from the 22-month low of 0.8396 ahead of the August 2022 bottom at 0.8385.
However, should an upside reversal take form, immediate resistance will likely come from the 20-day SMA at 0.8465 ahead of recouping the gap and meeting the 0.8482-0.8495 restrictive region. A break higher could switch the outlook back to neutral one, testing the 50-day SMA at 0.8520.
In the medium-term, the outlook remains negative since prices hold below all the moving average lines and the bearish cross between the 20- and the 50-day SMA stays in place.Related Assets
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