Technical outlook remains mixed, biased towards sideways trading

• EUR/GBP faces a mixed outlook despite trading above 0.8400.
• Bearish signals from RSI and MACD, but momentum is flattening.
• The pair could consolidate in a range between 0.8400 and 0.8450.

In Thursday’s session, EUR/GBP fell slightly to 0.8425 as the pair faced a mixed technical outlook with flat indicators in negative territory. All indications are that the bears are taking a break after losing more than 1% in August.

The Relative Strength Index (RSI) remains in negative territory around 39 with a slight downward slope, signaling the flattening of bearish momentum. The Moving Average Convergence Divergence (MACD) prints flat red bars, further strengthening the bearish flattening pull. Additionally, volumes have been falling over the past few sessions.

EUR/GBP is consolidating above the 0.8400 level after sharp downward moves in August, which acts as immediate support, with resistance at 0.8430. If the pair breaks this level, it could target 0.8450 and 0.8470. On the downside, immediate support is seen at 0.8400, followed by 0.8350.

EUR/GBP daily chart