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EURGBP’s Upside Drive Dwindles, Nourishing Range

EURGBP remains consolidated between the confines of 0.8860 and 0.9229, with the pair currently testing the flattening simple moving averages (SMAs). The horizontal SMAs are promoting the sideways picture, while the static Ichimoku lines are reflecting oxygen deprived directional momentum.

Looking at the short-term oscillators, the conflicting signals in sentiment are apparent. The MACD is slightly above zero but below its red trigger line, while the RSI has dipped below its neutral threshold. Yet, the stochastic oscillator maintains a positive charge, promoting price strength.

If the pair continues to deteriorate, instant support may develop from the steadying 50- and 200-day SMAs at 0.9010 and 0.8980 respectively, ahead of the trough of 0.8952. Successfully diving below these obstacles, the price may challenge the support base from the 0.8890 level, which happens to be the 50.0% Fibonacci retracement of the up leg from 0.8281 to 0.9498, until the 0.8860 mark. However, if this section of lows gives way, the price may then target the 0.8807 barrier.

If buyers re-emerge and drive the price above the 100-day SMA at 0.9036, immediate resistance could arise from the red Tenkan-sen line at 0.9088. Gaining ground from here, the ceiling of the range from the 23.6% Fibo of 0.9210 until the 0.9229 high could prove a heavy obstacle to overcome. Triumphing above it though could thrust the pair towards the 0.9291 peak and the 0.9327 boundary.

Summarizing, EURGBP retains its short-to-medium-term neutral tone ranging between the limits of 0.8860 and 0.9229. A break of these boundaries below or above could pave a clear price path.