The bulls are gathering steam and eyeing critical resistance

• EUR/GBP rose to 0.8450, targeting the 20-day SMA
• RSI and MACD project that buying pressure is increasing.
• If the buyers regain the 20-day SMA, the outlook will improve.

In Tuesday’s session, EUR/GBP rose 0.28% to 0.8450 and extended its sideways trading range following the narrow range moves of past sessions. A break above the 20-day simple moving average (SMA) converging at 0.8450 would confirm a break in the sideways moves.

The Relative Strength Index (RSI), currently at 50, indicates that the pair is in neutral territory, while the RSI slope is rising sharply, suggesting that buying pressure is recovering. Moving Average Convergence Divergence (MACD) shows a green histogram with rising bars, revealing that buying pressure is building. The combination of these technical indicators suggests that the bulls are regaining some control.

EUR/GBP daily chart

The EUR/GBP pair has been consolidating in a tight range over the past seven sessions with little upward or downward momentum. However, the pair is trading slightly higher at 0.8450 and has mainly traded in the 0.8420-0.8460 range. If the pair breaks the immediate resistance level of 0.8460, it could target 0.8480 and 0.8500. Conversely, a break below 0.8420 could open further downside potential below 0.8400 and 0.8380.