EUR/GBP attempts recovery but faces strong resistance
Bias in EUR/GBP has started to skew higher after bouncing off the 0.84 mark, but resistance remains firm at 0.8433. The momentum for the past few sessions has been bullish but the gains have been limited, with pullbacks from the intraday highs, forming a series of inverted hammer candlesticks, potentially signalling a reversal at the end of a downtrend.
The RSI is skimming just above the oversold territory, but the flattening scope indicates a lack of momentum, which could see EUR/GBP trending sideways over the coming sessions. The start of the European session on Tuesday indicates just that, with the gains earlier in the day having been pared back.
Overall, the long-term bias remains to the downside as the path of least resistance stays put. Sellers will need to test the current support at 0.84 before breaking down lower towards 0.8380 but it may take a few sessions as the current attempt at a bullish reversal may play out a little longer.
The RSI is skimming just above the oversold territory, but the flattening scope indicates a lack of momentum, which could see EUR/GBP trending sideways over the coming sessions. The start of the European session on Tuesday indicates just that, with the gains earlier in the day having been pared back.
Overall, the long-term bias remains to the downside as the path of least resistance stays put. Sellers will need to test the current support at 0.84 before breaking down lower towards 0.8380 but it may take a few sessions as the current attempt at a bullish reversal may play out a little longer.
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