EURGBP posted strong losses on Wednesday, erasing the previous gains, and returning above the 20-day simple moving average (SMA). The bias in the short-term is appearing neutral as the price failed several times to make a daily close above 0.8585. The RSI is sloping slightly upwards in the positive region; however, the MACD is losing momentum below its trigger and zero lines.
Should the price retreat further, the 200-day SMA at 0.8437, which the bears were unable to break over the last three weeks, could provide immediate support. Moving lower, the focus will shift to the 40-day SMA at 0.8414, while lower still the 0.8380 would increase speculation that the medium-term bullish phase has ended, and a downtrend is in progress.
In the alternative scenario, traders would be eagerly looking for a break above 0.8585 to increase buying orders. If that’s the case, the rally could last until 0.8617 ahead of the 0.8660 bullish spike, taken from the peak on July 2021.
All in all, EURGBP is moving sideways in the short-term, while in the medium-term outlook, the price is showing some positive signs.