Sun, Aug 14, 2022 @ 02:45 GMT
HomeContributorsTechnical AnalysisEURGBP Remains Neutral As Consolidation Phase Extends

EURGBP Remains Neutral As Consolidation Phase Extends

EURGBP remains neutral as consolidation continues on the 4-hour chart since the pullback from the high of 0.8994 that was hit on July 21.

The shorter-term 20-period moving average (MA), currently at 0.8941, is providing immediate support.

The bullish breakout from 0.8860 on July 20 (top of a recent range), coincided with the bullish crossover of the 20-period MA with the 50-period one. The 20-period MA has stopped rising and has turned horizontal, while RSI is moving sideways, suggesting that consolidation is likely for EURGBP in the near term.

A move to the downside would find support at the July 27 low of 0.8890. From here, further support is located at 0.8860 and at 0.8760. These are important levels that acted as support and resistance levels in the past.

Looking at the bigger picture, there are no clear signs of a reversal in the slow uptrend that has been taking place since May. In the near term, the market is in a corrective mode, with scope to bounce higher to clear 0.8941 and target the key 0.9000 level which has not been reached since November 2016.
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