The pair’s findings stabilize at 0.8350, the technical outlook remains bearish

• EUR/GBP has retraced Monday’s sharp downside moves.
• Daily RSI and MACD signal stabilizing selling pressure.
• The pair could extend its current sideways trend in the coming sessions.

EUR/GBP rose to 0.8370 on Wednesday, showing some volatility during the European trading session. However, the pair failed to hold on to the gains and is currently trading at 0.8350. The crossover appears to be consolidating the start of the week’s sharp downward moves, with sellers taking a break.

The Relative Strength Index (RSI) on the daily chart is 37, suggesting that buyers are starting to take control after Monday’s selloff, and the RSI is gradually rising. However, the RSI is still below the median line, indicating that the market is in a negative trend. The Moving Average Convergence Divergence (MACD) is flat, with the signal line above the MACD line, suggesting selling is losing momentum.

EUR/GBP daily chart

Based on the current technical picture, the EUR/GBP pair is likely to remain in a short-term consolidation phase. With the pair at the minimum since 2022, the bears seem to have already done their part and may move away to consolidate their moves. Meanwhile, the bullish traction gained on Wednesday continues to be weak, so the current bearish scenario is not threatened.

Support levels: 0.8315, 0.8330, 0.8340
Resistance levels: 0.8400, 0.8430, 0.8440