The EUR/GBP pair saw a rise on Wednesday’s session, gaining 0.37% to land at 0.8360 as it attempted to recover the 20-day Simple Moving Average (SMA). Despite this surge, momentum remained flat as the Relative Strength Index (RSI) stood at 48 in the negative zone, but with a sharp rising slope indicating recovering buying pressure. Similarly, the Moving Average Convergence Divergence (MACD) was flat and green, suggesting a flat buying pressure as well.
The pair has been trading within a range of 0.8352 to 0.8390, with support levels at 0.8350, 0.8330, and 0.8315, and resistance levels at 0.8370, 0.8390, and 0.8400. If the bulls are unable to secure the 0.8360-0.8400 area, it could lead to a sharp selling pressure, while consolidation above this range might fuel a recovery. Despite this, buying momentum remains subdued at the moment.
Looking at the daily chart of EUR/GBP, it is evident that the pair is trying to regain the 20-day SMA with the RSI rising sharply. However, the MACD remains flat and green, indicating a slow recovery in buying pressure. The pair’s price action has been confined within a specific range, with clear support and resistance levels that traders need to watch closely for potential breakout opportunities.
In conclusion, the EUR/GBP pair’s movement on Wednesday showed signs of recovery as it attempted to breach the 20-day SMA. The RSI and MACD indicators suggested a slow but steady increase in buying pressure, with the pair trading within a defined range. Traders should closely monitor the support and resistance levels for potential trading opportunities based on breakout scenarios. Overall, the pair’s outlook remains positive with a focus on sustaining momentum above the key support levels.
