The EUR/GBP price has recently dropped to the bottom of a multi-month range but has since bounced back from support. Currently, it is trading at 0.8547, slightly above the range low of 0.8530.
The 4-hour chart for EUR/GBP shows a sideways trend, indicating that the pair is likely to continue moving within the range. There is a potential for the price to rise towards resistance around the 0.8560s, and if it breaks above, it could reach levels around 0.8595.
The MACD indicator is signaling a potential buy opportunity as it looks set to cross above its signal line. This suggests that there could be more upside movement in the market. In a non-trending market like this, the MACD indicator tends to be more reliable.
On the other hand, a significant break below the range low could lead to further downside movement, with potential targets at 0.8486 and 0.8460 based on Fibonacci ratios. A clear break would be indicated by a strong bearish candlestick closing below the range floor.
Overall, the EUR/GBP pair is currently showing signs of potential upward movement within the range, supported by technical indicators like the MACD. Traders should watch for breaks above resistance or below support levels for potential trading opportunities.