EURGBP is seeing lingering downside risks despite an increase in buying interest around the 0.8327 level, which unfolded slightly below the simple moving averages (SMAs). That said, from the beginning of the year, the broader bearish trend has glided into a trading range that spans from a more than 5½-year low of 0.8202 until the 0.8512 high, and the directionless SMAs are reflecting the prolonged consolidation of the price within these boundaries.
Currently, the falling Ichimoku lines are indicating that the negative forces remain active, while the short-term oscillators are transmitting conflicting signals in directional momentum. The MACD is in the negative zone and below its red trigger line but has moved higher towards it, while the RSI is dipping back down toward its 30 oversold level. Meanwhile, the positively charged stochastic oscillator has yet to reflect any upside weakness, promoting further improvements in the pair.
If the price oversteps the red Tenkan-sen line at 0.8348, tough upside friction could commence at the 200-period SMA at 0.8364 ahead of a resistance band between the 0.8380 inside swing low and the 100-period SMA at 0.8388. Successfully gaining further ground, the bulls may then encounter a fortified resistance section extending from the 0.8400 handle up until the 0.8415 level, which includes the 50-period SMA, the blue Kijun-sen line and the Ichimoku cloud. Beyond this obstacle, the 0.8434-0.8449 resistance region may try to impede buyers from climbing towards the 0.8512 upper limit of the trading range.
Alternatively, if negative pressures intensify again, the initial 0.8315-0.8327 support foundation could attempt to prolong the neutral price path. Failing to succeed, sellers may then eye the 0.8300 hurdle along with the March 23 trough of 0.8294. Should downside forces dominate, the price could then sink towards the 0.8261-0.8271 support border.
Summarizing, EURGBP is exhibiting a bearish vibe within a neutral picture. A break either below 0.8202 or above 0.8512 could deliver a clearer price direction. For now, sellers are aiming for the lower limit of the consolidation and a dive below 0.8294 may strengthen this narrative. Yet, a hike in the price above the cloud may feed upside pressures.
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