EURGBP’s neutral-to-bullish picture seems to be taking some damage as the price dipped under the 100-period simple moving average (SMA), touching the mid-Bollinger band at 0.9005. In spite of the rising 100-period SMA, the 200-period SMA is endorsing a more neutral tone, while the slowing upward pace in the 50-period SMA, is sponsoring a fading positive picture.
The short-term oscillators are suggesting mixed signals in directional momentum. The MACD is plunging below the zero mark, distancing itself from its red trigger line, while the RSI is edging sideways towards the trend line. Yet, the stochastic %K line is signalling an upside price tendency. Nonetheless, as things stand, it appears the pair is adopting a sideways demeanour.
Challenging the current downwards trajectory is the tough support zone from the 100-period SMA at 0.9017 until the 200-period SMA at 0.8994, which also contains the lower Bollinger band at 0.9005. If the bears pierce under the key 200-period SMA at 0.8994, the troughs at 0.8982 may then attempt to terminate further declines. However, failing to do so, the bias may well shift neutral-to-bearish with sellers aiming for the 0.8960 barrier, and the 0.8928 and 0.8913 respective lows.
To the upside, if buyers manage to clearly push over the immediate resistance of 0.9044, the price may jump towards the 50-period SMA at 0.9077. Climbing higher, the 0.9100 handle could come next, reinforced by the mid-Bollinger band. Persistent buying interest may then catapult the price towards the resistance band of 0.9140-0.9148. Conquering this too, the pair may target the upper Bollinger band at 0.9195.
Summarizing, EURGBP’s short-term timeframe seems to be consolidating slightly above its 200-period SMA. A break below 0.8982 may accelerate negative moves, while a push above 0.9148 may build some confidence in the pair.
