The EUR/GBP pair’s movement on Tuesday saw a slight decline of 0.10%, bringing it to a level of 0.8380. Despite this, the overall bias remains bullish, as indicated by various technical indicators. This sideways trading is a continuation of the trend that began after a rally last week, showing the resilience of the bullish momentum in the pair.
One key indicator to look at is the Relative Strength Index (RSI), which is hovering around the 50 mark and showing a slight decline. This indicates that there is an increasing amount of selling pressure in the market. On the other hand, the Moving Average Convergence Divergence (MACD) is currently flat in positive territory, suggesting that the buying pressure has stabilized for the time being.
Looking ahead, a bullish scenario could unfold if the price manages to break through the resistance level at 0.8400, which would also secure the 20-day Simple Moving Average (SMA). This could potentially open up the path for further gains towards levels such as 0.8450 and 0.8500. Conversely, if the price drops below the support level at 0.8320, it could trigger a renewed downward movement in the pair.
In conclusion, while the EUR/GBP pair seems to be taking a breather from the bullish momentum seen last week, the overall outlook remains positive for the bulls. The pair is currently trading within a range, but maintaining a bullish bias. It will be important to monitor key levels such as 0.8400 and 0.8320 in the coming days to gauge the next potential direction for the pair. As always, it is recommended to keep a close eye on the various technical indicators and price levels to make informed trading decisions.
