EUR/GBP remains muted in the European session on Tuesday.
Price moves in a broader trading range of 0.8530 and 0.8600.
Momentum oscillators hold onto the overbought zone warns against aggressive bets.
EUR/GBP edges lower while extending the previous session’s downside momentum. The pair confides in a very tight trade band.
At the time of writing, EUR/GBP is trading at 0.8533, down 0.03% for the day.
On the daily chart, the EUR/GBP cross has been trading in a broader trading range of 0.8530 and 0.8600, which constitutes a rectangle technical formation starting from August 19.
Currently, the price moves along with the lower trendline of the mentioned rectangle price pattern.
A break of the formation on the lower side would ignite heavy sell-off in the pair with the first downside target appears at the previous day low of 0.8510.
In doing so, EUR/GBP bears would then make a way to reach the 0.8495 horizontal resistance level.
The Moving Average Convergence Divergence (MACD) indicator trades in the overbought zone. Any downtick in the MACD would encourage bears to retest the low made on August 12 at 0.8455.
Alternatively, if price moves higher in that case, the bulls would meet the first upside target at the 50-day Simple Moving Average (SMA) at 0.8546.
Next, EUR/GBP bulls would aim at the 0.8560 horizontal support level followed by a September 9 high of 0.8588.