- The EUR/GBP sellers are looking exhausted below the 200-day moving average.
- The daily MACD histogram is reporting a bullish divergence.
- The pair may chart a minor bounce to levels above the 10-day moving average.
EUR/GBP’s sell-off from Aug. 12’s high of 0.9324 seems to have run out of steam below the 200-day moving average (MA).
That is evident from the pair’s sideways action below the 200-day MA since Monday.
The higher lows or the bullish divergence of the moving average convergence divergence (MACD) histogram also indicates that sellers have run out of steam.
As a result, a bounce could be in the offing, possibly to levels above the 10-day MA, currently at 0.8850. As of writing, the EUR/GBP pair is trading at 0.8825, representing marginal gains on the day. The 200-day MA is currently located at 0.8834.
A convincing close above the 10-day MA would neutralize the bearish setup and could be followed by a sideways to positive action. Meanwhile, a strong rejection at the 200-day MA will likely invite fresh selling pressure.
Daily chart
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Trend: Bounce likely
Technical levels
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