- On Friday, the EUR/GBP pair was in a sideways trend, recording daily gains and stabilizing at 0.8335.
- The RSI and MACD indicators suggest that selling pressure is persistent, but there are still signs of oversold.
- The pair appears to be consolidating Monday’s piercing downward moves.
The EUR/GBP rate has been falling steadily over the past trading days, so the bears have come out for a breather. On Friday, the rate initially jumped to 0.8350 and then stabilized at 0.8330, which is another argument for buyers.
The relative strength index (RSI) is in a near oversold area, suggesting that selling pressure is intense, while the moving average divergence (MACD) histogram is red and flat, supporting the case for consolidation in a near breakout.
The EUR/GBP pair appears to be facing short-term downward pressure, with bears currently dominating the market. A drop below the support at 0.8300 could result in further declines. However, oversold signals from technical indicators suggest the possibility of an upward correction. A break above the 0.8400 resistance level would be necessary for the bulls to regain control.
