EURGBP today was denied once again further appreciation above the ceiling of the range (0.8864), which has limited advances since April 6. The price reversed ahead of the upper boundary and seems to be building some negative momentum inside the sideways market, something also reflected within the technical indicators.
The MACD, in the positive section, is weakening above its red trigger line while the RSI is declining after a deflection off the 70 level. Moreover, the stochastics are falling after completing a bearish crossover in overbought territory.
To the downside, strong support exists from the uninformative simple moving averages (SMAs) around 0.8766 until the 0.8747 level, which is the 61.8% Fibonacci retracement of the up leg from 0.8281 to the 11-year high of 0.9497. Moving past these obstacles, the lower Bollinger band of 0.8696 and the base of the range at 0.8682 could challenge the decline. Steering below 0.8682 could meet the 0.8620 and 0.8593 troughs from around early March ahead of the 76.4% Fibo of 0.8569 underneath.
Should buyers revisit and conquer the roof of the consolidation at 0.8864, immediate resistance could occur at the 50.0% Fibo of 0.8889 overhead. Overcoming this too may rally the price to the 0.8990 barrier ahead of the 38.2% Fibo of 0.9033.
Summarizing, the pair remains undecided in the very-short-term timeframe and a break either below 0.8682 or above 0.8864 may reveal a distinct direction.
