Bullish sentiment holds despite minor dip
- The EUR/GBP pair is trading steadily near the 0.8600 mark after a slight pullback following the European session close.
- While momentum indicators show a mixed picture, the general alignment of moving averages continues to favor the upside.
- Key support levels are identified at 0.8577, 0.8570, and 0.8546, with resistance noted near the 0.8591 area.
The EUR/GBP pair is currently exhibiting a broadly bullish signal, holding ground around the 0.8600 region. This comes after a modest easing during Tuesday’s trading session, occurring subsequent to the closure of European markets. The pair remains comfortably situated within the day’s range, trading between the session low of 0.8569 and the day’s high near 0.8611, which suggests that a phase of consolidation may be underway within the prevailing upward trend.
From a technical standpoint, the picture presented by momentum indicators is somewhat mixed. The Relative Strength Index (RSI) maintains a neutral position, hovering close to the 58 level, while the MACD indicator continues to generate a buy signal. However, the Stochastic RSI is also signalling neutrality, and the Momentum indicator shows a slight bearish tilt, introducing a hint of hesitation among buyers in the near term.
Nevertheless, the broader technical setup remains encouraging for bulls. The significant Simple Moving Averages (SMAs) – specifically the 20-day at 0.8506, the 100-day at 0.8369, and the 200-day at 0.8386 – are all clearly pointing upwards. This bullish market structure is further confirmed by the positioning of the 10-day and 30-day Exponential Moving Averages (EMAs), which are holding above 0.8569 and 0.8490 respectively, reinforcing the pair’s current strength.
Looking ahead, immediate support is anticipated at 0.8577, followed by subsequent levels at 0.8570 and 0.8546. On the other hand, resistance is expected to emerge around the 0.8591 level. The overall bias for EUR/GBP leans positive, particularly as long as the price successfully remains above the crucial moving averages heading into the upcoming Asian trading session.
