EURGBP Consolidates Gains

The euro recovers as traders wait for the ECB’s policy meeting later today. A rally above November’s high at 0.8590 has put the bulls back in the game. However, the RSI’s repeated venture into the overbought area has refrained buyers from chasing the momentum.

A drop below 0.8490 shows some weakness in the euro. A lack of support and a bearish MA cross may lead to an acceleration to the downside. 0.8460 would be the next target. The euro will need to reclaim 0.8550 to consolidate the rebound.