Mixed technical outlook emerges as buying pressure recedes

• RSI and MACD indicate a decrease in buying pressure.
• The pair remains stuck in a sideways range between 0.8420-0.8460.
• The cross wiped out most of Tuesday’s gains.

EUR/GBP’s 0.28% gain on Tuesday to 0.8450 was reversed by Wednesday’s 0.49% decline. The latest price action and technical indicators depict a mixed technical outlook.

EUR/GBP price movements have fluctuated in a narrow range in recent sessions. However, Wednesday signals continued selling pressure. The Relative Strength Index (RSI), which is currently at 43, suggests that selling pressure is building. RSI’s negative terrain and downward slope further reinforces this view. Furthermore, the Moving Average Convergence Divergence (MACD) histogram, while still green, is showing a decline, suggesting that the recently gained buying pressure is easing.

EUR/GBP daily chart

Based on the mixed technical outlook, the future direction of EUR/GBP is uncertain. A break above the immediate resistance level of 0.8460 could target 0.8480 and 0.8500. Conversely, a break below 0.8420 could open up further downside potential towards 0.8400 and 0.8380.