EUR/GBP TRADES NEAR 0.8600 AMID NEUTRAL SHORT-TERM SIGNALS
EUR/GBP TRADES NEAR 0.8600 AMID NEUTRAL SHORT-TERM SIGNALS
The EUR/GBP currency pair experienced a slight pullback on Wednesday, April 23, 2025, retreating toward the lower end of its recent consolidation range.
The pair was last observed hovering near the 0.8600 level, indicating a mild correction within an overall bullish technical setup.
Despite the recent dip, EUR/GBP remains within a healthy daily range between 0.8590 and 0.8640, suggesting consolidation rather than a trend reversal.
The pair has been trading sideways below the 0.8600 resistance level, with upside potential favored due to firm Bank of England (BoE) rate cut expectations.
The Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) indicators are in neutral territory, reflecting a balance between buying and selling pressures.
The pair is trading within a descending trend channel on the four-hour chart, with the 50-hour Exponential Moving Average (EMA) on the verge of crossing above the 100-hour EMA, potentially signaling a bullish crossover.
Market participants are closely monitoring the European Central Bank's (ECB) stance on interest rates.
ECB policymaker Madis Muller indicated that the central bank is approaching a point where it can start reducing interest rates, which could support the euro.
Conversely, the BoE's recent dovish guidance on interest rates has reinforced expectations for rate cuts, potentially weakening the pound.
