Pair dips near range low despite bullish backdrop

• EUR/GBP trades near the 0.8500 zone after sliding from earlier session levels
• Despite the retreat, indicators and averages continue to favor a bullish setup
• Support emerges around 0.8544 and 0.8507, with resistance seen near 0.8642

EUR/GBP edged lower on Tuesday after the European session, retreating toward the bottom of its intraday range while holding just above key technical levels. The pair was last seen near the 0.8500 area, down modestly on the day, yet broader signals still point to underlying bullish strength.

Momentum indicators remain mixed. The Relative Strength Index (RSI) is neutral at 58.46, showing no immediate threat of overbought or oversold conditions, while the Moving Average Convergence DIvergence (MACD) prints a bullish crossover, suggesting upward momentum could resume. Both the Stochastic %K at 69.95 and the Ultimate Oscillator at 49.06 are also neutral, offering limited directional bias in the short term.

Key moving averages continue to support the bullish case. The 10-day EMA at 0.85468 and SMA at 0.85441 provide dynamic support, while longer-term averages — the 20-day SMA at 0.84520, 100-day at 0.83568, and 200-day at 0.83826 — all trend higher and sit comfortably below current price levels.

Daily chart