Technical Analysis – EURGBP neutral in the near- and medium-term by XM
EURGBP has been posting gains for the second day in a row, though it is currently mostly unchanged from the previous day’s close. Yesterday it rose by slightly more than 0.9%.
The RSI indicator is currently at 52, in close proximity to the 50 neutral level that distinguishes positive from negative short-term market sentiment. The stochastics are painting a neutral short-term picture as well, since the %K line is in neutral area while it is converging with the slow %D line after previously crossing above it.
On the upside, the area around 0.8625 has during the past few months served as both support and resistance and should the price move up, it is likely to provide some resistance. If the price continues moving up, the January 16 two-month high of 0.8851 would come into view as another resistance level.
On the downside, the 50-day moving average (MA), currently at 0.8527, is likely to act as immediate support. A breach of this level would bring into scope the late January three-week low of 0.8470 as another support level.
Looking at the medium-term outlook, the price is at the moment above both the 50- and 200-day MAs, though it has not been consistently above the 50-day one. This sets a more neutral medium-term outlook.
Overall, both short- and medium-term bias is neutral.