EUR/GBP has been trading sideways in the short-term over the last month with upper boundary the 0.8840 resistance level and lower boundary the 0.8700 handle.
In the near-term, the price is moving around the 20- and 40-day simple moving average (SMA), while the technical indicators hold near their neutral levels. The RSI indicator is pointing down and it has managed to cross into negative territory below the 50 level. Also, the MACD oscillator is flattening near its trigger line.
Strong losses could drive the price towards the next immediate support level of 0.8700. In case of a slip below the aforementioned level, the price could touch the 0.8620 support barrier, which is holding near the lower boundary of the downward sloping channel. In case of further downside pressure, the pair could penetrate the channel to the downside and drive EUR/GBP towards the 0.8500 handle.
On the flip side, an immediate level is likely to come from the 0.8840 hurdle, which has proved a strong resistance area in the past. A break above that could lead prices near the upper channel line around the 0.8900 critical level.
In the bigger picture, the pair remains in a slightly downward-tilting channel, which has been in place since September 2017. The longer-term neutral to bearish outlook was recently confirmed again when the pair touched an 11-month low of 0.8620 on April 16.
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