The EUR/GBP price is currently on the rise within a range, having bounced off support at the lower end of the range. The trend is sideways and is expected to continue within the range, with price movements oscillating back and forth.
Recently, the EUR/GBP pair faced resistance from a cluster of Moving Averages around the 0.8560s, causing a pullback. To confirm further upside potential, the pair would need to break decisively above the Moving Averages at 0.8565, targeting the upper end of the range at approximately 0.8595.
The Moving Average Convergence Divergence (MACD) indicator has given a buy signal as it crossed above its signal line, indicating a shift from the lower end of the range back towards the upper end. In a sideways trend like this, the MACD is a reliable indicator for market analysis.
Until a strong directional move breaks the current trend, EUR/GBP is expected to remain range-bound. A break below the lower end of the range could lead to further downside towards the target at 0.8486, while a break above the upper end could signal a breakout towards targets at 0.8635 and 0.8645.
A decisive break would be characterized by a significant candlestick movement that breaks completely above or below the range and closes near its high or low, or three consecutive candlesticks that clearly break through the established level.