- EUR / GBP remains stable during the European session.
- The bulls remain defensive near the daily highs.
- MACD retracement signifies downside momentum.
EUR / GBP is moving lower within a narrow trading range during the European session on Wednesday. The cross has peaked at 0.8695 before falling back to intraday lows at 0.8670.
At the time of writing, the EUR / GBP is trading at 0.8672, losing 0.20% on the day.
On the 4-hour chart, the cross has been trading on a negative bias, albeit within a tight trading range. The big bullish candle on Tuesday was followed by several Dojis near highs, which means that a pullback in prices may come.
After making a bearish crossover, the MACD indicator is now pulling back towards the midline, confirming the negative background on the pair. Moving lower, the bears could test the 23.6% Fibonacci retracement at 0.8650 and the 0.8620 horizontal support zone. A sustained move below the 50 SMA at 0.8610 would test the April 7 lows near 0.8580.
On the other hand, if the price breaks above the 0.8700 level, it will encourage the bulls towards the February 26 highs near 0.8730. This would open the doors for further gains near the horizontal resistance zone of 0.8750 and the February 12 highs near 0.8790.
EUR / GBP 4-hour chart
EUR / GBP technical levels
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