HomeContributorsTechnical AnalysisEURGBP Lacks Clear Direction in Short-Term

EURGBP Lacks Clear Direction in Short-Term

  • EURGBP fails to recoup the negative gap
  • RSI ticks down but MACD stands above its trigger line

EURGBP is heading south after the pullback off the 20-day simple moving average (SMA) around 0.8465. The pair is moving sideways after the European elections and the negative gap that was posted back on June 10.

Technically, the momentum oscillators indicate mixed signals. The RSI is sloping down beneath the neutral threshold of 50; however, the MACD oscillator is holding above its trigger line beneath the zero level.

If prices continue to move lower, support should come from the 22-month low of 0.8396 ahead of the August 2022 bottom at 0.8385.

However, should an upside reversal take form, immediate resistance will likely come from the 20-day SMA at 0.8465 ahead of recouping the gap and meeting the 0.8482-0.8495 restrictive region. A break higher could switch the outlook back to neutral one, testing the 50-day SMA at 0.8520.

In the medium-term, the outlook remains negative since prices hold below all the moving average lines and the bearish cross between the 20- and the 50-day SMA stays in place.

XM.com
XM.comhttp://clicks.pipaffiliates.com/c?c=231129&l=en&p=0
XM is a fully regulated next-generation financial services provider of online trading on currency exchange, commodities, equity indices, precious metals and energies, with services to clients from over 196 countries worldwide. Founded in 2009 by market experts with extensive knowledge of the global forex and capital markets and with the aim to ensure fair and reliable trading conditions for every client, XM has reached international recognition by virtue of its unbeatable execution of orders, spreads as low as zero pips on over 50 currency pairs, gold and silver, flexible leverage up to 888:1, and personalized customer engagement to foster clients’ success.

Featured Analysis

Learn Forex Trading