- EUR/GBP rises to 0.8450 on Wednesday, testing the upper limit of its trading range.
- The RSI indicates mildly overbought conditions but retains a positive outlook.
- The MACD histogram displays shrinking green bars, signaling weakening bullish momentum.
The EUR/GBP pair saw modest gains on Wednesday, rising to 0.8450 while continuing to trade within a range of 0.8440 to 0.8475. However, the momentum appears to be fading as the pair approaches a key resistance level.
From a technical perspective, the Relative Strength Index (RSI) sits at 69, indicating slightly overbought conditions that could limit further gains in the short term. Similarly, the Moving Average Convergence Divergence (MACD) histogram is displaying shrinking green bars, signaling a loss of bullish momentum. While the broader trend remains upward, these indicators suggest the pair’s immediate upside potential may be constrained.
A decisive break above the 0.8475 resistance could open the door for a move toward the psychological level of 0.8500. On the downside, a reversal at current levels might lead to a retest of the 0.8440 support. A break below this level could expose 0.8415 as the next critical support zone to watch.
EUR/GBP daily chart
