EUR/GBP Price Analysis: Technical outlook remains mixed, set to side-ways trade
- The EUR/GBP pair faces a mixed outlook despite trading above 0.8400.
- Bearish signals from RSI and MACD, but momentum is flattening.
- The pair might consolidate within a range between 0.8400 and 0.8450.
In Thursday’s session, the EUR/GBP pair mildly declined to 0.8425 while the pair faced a mixed technical outlook with indicators flat in negative terrain. It all points out to bears taking a breather after shedding more than 1% in August.
The Relative Strength Index (RSI) remains in negative territory, around 39, with a mildly declining slope, signaling flattening bearish momentum. The Moving Average Convergence Divergence (MACD) prints flat red bars, further reinforcing the flattening bearish traction. Additionally, volumes have been decreasing over the last few sessions.
The EUR/GBP pair is consolidating above the 0.8400 level after August’s sharp downward movements, which acts as immediate support, with resistance at 0.8430. If the pair breaks above this level, it could target 0.8450 and 0.8470. On the downside, immediate support is seen at 0.8400, followed by 0.8350.