EUR/GBP has been trading within a relatively narrow range from Tuesday onward, only momentarily breaking out of the boundary formed by the 38.2% and 50% Fibonacci retracement levels of the March 7 to April 17 down-leg at 0.8753 and 0.8793 respectively.
The RSI is at the 50 neutral-perceived level and is moving sideways, pointing to the absence of momentum in either direction, the upside or the downside.
A rising pair may meet resistance around the 50% Fibonacci mark at 0.8793 – the region around this level encapsulates the 0.88 round figure, as well as the current level of the 100-day moving average at 0.8795 and a bottom from the recent past at 0.8771. The stronger bullish movement would turn the attention to the area around the 61.8% Fibonacci level at 0.8834.
In case of declines, support could come around the 38.2% Fibonacci mark at 0.8753 – the area around this point also includes the 50-day MA at 0.8750, as well as a few bottoms from the past. Further below, the 23.6% Fibonacci level at 0.8702 would come in sight.
The medium-term picture is looking mostly neutral at the moment, with trading activity taking place in between the 50- and 100-day MA lines, and price action exhibiting considerable sideways movement over the last few months.
Overall, both the short- and medium-term outlooks are currently looking neutral.
All trading involves risk. It is possible to lose all your capital
This information is not considered as investment advice or investment recommendation but instead a marketing communication. This material has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.