EUR/GBP trades neutral, with bulls struggling despite defending the 200-day SMA

• EUR/GBP is trading virtually unchanged at 0.8670 after falling below the 200-day SMA to 0.8645.
• On the daily chart, the RSI and MACD signals are mixed, but point to less buying momentum.
• Despite the negative near-term outlook, the SMA positioning supports an overall bullish bias.

In Tuesday's session, EUR/GBP hovered around 0.8670 with slight losses after finding support at lows around 0.8645. On the daily chart, buyers and sellers are fighting for control with a neutral to bullish outlook, although the bullish momentum is flattening. However, on the four-hour chart, the indicators have flattened, suggesting a possible bearish tilt.

In line with this, the daily chart indicators reflect a flat Relative Strength Index (RSI), hovering comfortably within the positive zone, typically suggesting bullish momentum, while the Moving Average Convergence (MACD) exhibits a decreasing green bars, signaling bearish momentum despite remaining in a bullish sector.

However, above these short-term signals, the overall trend appears to be governed by bullish strength, due to the pair placing above its crucial SMAs of 20, 100 and 200. This indicates that the bulls may hold, at least for now, a reasonably strong position despite having lost some ground recently. The fact that the bulls have defended the 200-day average also suggests that the outlook remains positive for the cross.

On the four-hour chart, the trend is more bearish. Indicators are projecting a sideways movement with a downward tilt, indicating limited upside potential. Specifically, the four-hour Relative Strength Index (RSI) is in negative territory, while the Moving Average Convergence Divergence (MACD) prints flat red bars.

EUR/GBP Daily Chart