The EUR/GBP pair has experienced a decline, hovering around the 0.8500 mark as trading progresses. Short-term market signals demonstrate downward pressure, while long-term moving averages suggest a more supportive environment despite present challenges.

Technically, indicators show a bearish signal with the RSI being neutral at 45, implying balanced momentum without firm directional movement. The MACD signals a sell, reinforcing the downward trend, although the Stochastic RSI Fast maintains neutrality. The Average Directional Index shows the bearish trend lacks notable strength.

Short Term Moving Averages

The short-term moving averages exacerbate the downward pressure, with the 10-day Exponential and Simple Moving Averages above and sloping down from the current price. The 20-day Simple Moving Average also trends downward, limiting recovery. In contrast, the 100-day and 200-day Simple Moving Averages are below current levels, offering broader support.

Support levels are seen at 0.8470, 0.8461, and 0.8430, while resistance is positioned at 0.8483 and 0.8497. Breaking the support level may increase the sell-off, whereas surpassing the resistance could challenge the bearish scenario.

In plain terms, this analysis highlights that EUR/GBP has been pulling back, trading close to 0.8500 but struggling to gain any meaningful traction. When we zoom into shorter periods, pressure is firmly to the downside. However, if we step back and take a wider view using long-term averages, the broader picture isn’t quite so one-sided. Those longer indicators suggest there’s still some ground beneath the pair limiting the risk of an extended fall—at least for now.

Digging into the tools that traders often lean on, the Relative Strength Index, also known as RSI, sits around 45. That’s right in the middle, which means there’s no particular momentum either way. The trend-following MACD, however, is on a sell signal. That backs the short-term move lower. The Stochastic RSI, which is sensitive to recent shifts in price, isn’t giving much either—neutral. And then we’ve got the ADX, a measure of trend strength, which tells us that even though the market is leaning bearish, it’s doing so without much force behind it.

Price And Support Levels

Now focusing on the moving averages, which often guide shorter-term sentiment—both the 10-day EMA and SMA are declining above where we are now. That paints a picture of downward momentum playing out in real time. The 20-day SMA following suit adds to that view. These shorter averages reinforce the near-term weakness because they’re acting like a ceiling. Price struggles to rise past them because they confirm sellers are currently more active.

Where things get more balanced is on the longer-term side. The 100-day and 200-day SMAs are still underneath the current price level. This signals that while recent action may be directed lower, the structure over several months still leans supportive. We can interpret this as a buffer—for now at least. It also hints that this pullback hasn’t broken larger trends yet.

As for price markers—there’s a support area around 0.8470 with more structure down near 0.8461 and then 0.8430. These levels could slow or even halt the decline if reached. On the upper side, resistance comes in at 0.8483 and then just under the round number at 0.8497. Climbing above either would be the pair’s first real test to reverse the selling pressure. A failure to break through would likely confirm continuation to the downside.

From our perspective, while recent signals lean negative, the softness in trend strength and the lack of firm directional momentum from RSI and Stochastic RSI imply that any sharp position shifts might be premature. Short-term trades are prone to quick reversals here, especially with support lurking nearby. More patience may be warranted, particularly around how the next move interacts with those technical boundaries shaping the pair right now.

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