Neutral bias to bear, eyes on crossover

• EUR/GBP fell to 0.8525 during the session on Tuesday in an ongoing range-bound move.
• Indicators are projecting mixed signals but generally suggest steady selling pressure.
• The crossover is about to close a bullish crossover between the 20-day and 100-day SMA, which would be a buy signal.

In Tuesday’s session, EUR/GBP fell modestly to 0.8525, continuing its range move. Technical indicators are giving mixed signals, suggesting a neutral outlook with a slight bearish bias. On the upside, a bullish catalyst could be a crossover between the 20- and 100-day simple moving averages (SMA) at the 0.8500 level.

The Relative Strength Index (RSI) remains steady at 54, indicating moderate selling pressure. However, the Moving Average Convergence Divergence (MACD) is forming rising red bars, indicating rising momentum and the possibility of a strong reversal. Volume patterns have been mixed, with lower volume in recent sessions compared to earlier peaks in the month.

EUR/GBP daily chart

The EUR/GBP pair consolidated in the 0.8500-0.8550 range. A break above 0.8550 could signal a bullish trend, while a break below 0.8500 could increase the likelihood of a continued downward move. Key support levels to monitor include 0.8450 and 0.8400, while resistance levels to consider include 0.8580 and 0.8600.