EUR/GBP Price Forecast: Neutral RSI signals further consolidation
EUR/GBP remains stuck in a narrow trading range this month, stalling the rebound from near 0.8460 in mid-July as buyers struggle to clear the 50-day Simple Moving Average (SMA).
EUR/GBP price appears to be in a consolidation phase, as the cross trades near 0.8567 this month. The Relative Strength Index (RSI) at around 53 suggests a neutral market sentiment, while the Moving Average Convergence Divergence (MACD) lines are close to the zero line, indicating weak bullish momentum. With price confined between the 50-day SMA and key Fibonacci levels, a potential breakout either way remains uncertain.
Traders are closely watching the 50.0% Fibonacci retracement at 0.8573 and the 61.8% retracement at 0.8601 for possible support or resistance levels. On the downside, the 38.2% Fibonacci level at 0.8545 and the 23.6% level at 0.8511 offer potential support if the price continues to fall. The broader market awaits the release of August's US Purchasing Managers Index (PMI) figures on Friday, which could provide further insights into the economic outlook and potentially influence the EUR/GBP exchange rate.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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