- Technical indicators suggest a shift in momentum into positive territory
- The RSI is rising near 50, indicating a recovery in buying pressure.
- The MACD continues to print red decreasing bars.
On Wednesday’s session, when EUR/GBP broke out and saw gains of 0.40% to rise near 0.8450. Although the bulls made a big step, they still have more work to do to confirm a recovery.
The Relative Strength Index (RSI) has turned back towards the midpoint of 50, signaling that buying pressure is picking up. This is supported by the flattening of the Moving Average Convergence/Divergence (MACD) histogram, with the red bars declining and the histogram approaching the zero line. This suggests a possible shift in momentum into positive territory.
However, the overall outlook remains cautious as the choppy price action in the recent candles suggests consolidation for the pair. Although the pair has held above the support level of 0.8400, the next resistance level to watch is 0.8460 on the 20-day simple moving average (SMA) and a break above it could confirm a recovery.
EUR/GBP daily chart
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
