Recovery gains momentum, technical outlook mixed

• EUR/GBP extended its recovery from last week’s lows, with technical indicators showing signs of improvement.
• Mixed signals from RSI and MACD, overall neutral outlook.
• The pair could continue to trade sideways in the coming sessions above 0.8400.

In Wednesday’s session, EUR/GBP rose slightly to 0.8420, continuing its recovery from last week’s losses, which saw the rate dip to 0.8400.

The Relative Strength Index (RSI) remains in negative territory, indicating that the bears have the upside. However, the RSI slope is rising, suggesting bullish momentum is building. The Moving Average Convergence Divergence (MACD) is showing falling red bars, also highlighting that the bears are losing momentum.

EUR/GBP looks set to consolidate above the 0.8400 level, which acts as immediate support, while resistances line up at 0.8430, 0.8450 and above 0.8470. With that in mind, everything points to the bears taking a breather after last week’s moves and the cross going into consolidation mode.

EUR/GBP daily chart