EURGBP has been moving sideways since the soft rebound on the 1-month low of 0.8680 on April 14, unable to fully recover losses made earlier in March.
In the short-term, the market could maintain consolidation if the RSI keeps moving around 50 and the red Tenkan-sen line, as well as the blue Kijun-sen line, hold flat. Regarding the trend, this is likely to remain on the downside in the near-term as the 20-period simple moving average (SMA) continues to lose strength below the flat 40-period SMA.
An extension to the upside and above the 40-period SMA at 0.8750 could meet the area between the upper boundary of the sideways channel at 0.8860 and the 23.6% Fibonacci retracement level of the down leg from 0.9500 to 0.8680 near 0.8995. Further up, the 0.8995 resistance, which is the 38.2% Fibonacci, could come next.
In the negative scenario, a decline beneath the one-month low of 0.8680 could confirm the medium-term negative picture, driving the market towards the 0.8620 support, registered on March 5. More losses could send bears to test the inside swing high from February 4 at 0.8520.
According the medium-term picture, the bearish sentiment deteriorated after the downfall towards 0.8680, while in the short-term it looks neutral.
