- EURGBP remains in sideways channel
- Technical oscillators lose steam
EURGBP is finding another strong obstacle to surpass within the medium-term trading range of 0.8497 to 0.8578. Specifically, the 23.6% Fibonacci retracement level of the down leg from 0.8765 to 0.8497 at 0.8560.
The pair is also flirting with the 20- and the 50-day simple moving averages (SMAs) and the technical oscillators are showing some weak signals. The RSI is flattening near the neutral threshold of 50, while the MACD is standing above its trigger line in the negative territory.
If the market slips beneath the mid-level of the range of 0.8530 then it may retest the lower boundary of 0.8497. Steeper decreases could open the way towards the 0.8400 handle, registered back in August, changing the outlook to a more bearish one.
On the flip side, a jump above the 23.6% Fibonacci of 0.8560 could lead the pair until the 0.8578 barricade. A climb towards the 38.2% Fibonacci of 0.8600 and the 200-day SMA at 0.8605 may switch the bias to bullish, meeting the 0.8620 resistance.
In a nutshell, EURGBP has been trading without clear direction since January 17. A closing session above or below the consolidation area could show the next path.
