EURGBP has found footing again around the 0.8500 handle after the pullback from the two-month high of 0.8598. The two-week rally from 0.8384 was denied passage past the 0.8600 hurdle, and the pair has now reinstated its neutral tone. The slight incline in the simple moving averages (SMAs) is showing a tendency for the pair to maintain a positive bearing despite the recent downside correction.
The Ichimoku lines are not demonstrating any commanding directional forces, while the short-term oscillators are conveying mixed messages in momentum. The MACD, slightly beneath the zero threshold, is sliding below its red trigger line, while the RSI is gliding a tad lower in the negative zone. On the other hand, the stochastic oscillator’s lines are in oversold territory, but the %K line has overstepped its %D line and is rising, looking set to return above the 20 mark, which may then confirm growing buying interest.
If the price creates traction off the 0.8500 barrier, preliminary resistance could arise between the cloud’s lower band at 0.8522 and the 50-period SMA at 0.8529. Gaining buoyancy, the pair could then tackle the 0.8552 highs. Surpassing this border, the bulls could propel towards the key 0.8588-0.8598 resistance section. Additional advances from here may then target the 0.8612 and 0.8623 nearby obstacles.
Otherwise, if selling pressures increase, the 0.8500 mark and the neighbouring support zone from the 100-period SMA at 0.8492 until the 0.8482 low could behave as tough upside defences. In the event sellers drive the price beneath the latter, which is a reinforced base, the price may dive for the November 29 trough of 0.8445 before battling the 0.8425-0.8436 support boundary.
Summarizing, EURGBP’s short-term neutral bias holds a lower limit at 0.8378 and an upper limit at 0.8598. Nonetheless, for directional impetus to start to mature, the price would need to either slip beneath the 0.8482-0.8492 support zone or jump above the 0.8552 border.
