EUR/GBP remains stuck in a narrow trading range this month, stalling the rebound from near 0.8460 in mid-July as buyers struggle to clear the 50-day Simple Moving Average (SMA).
At the time of writing, the cross trades around 0.8567 during European trading hours on Friday, virtually unchanged on the day
Traders show a muted reaction to Friday’s economic data. UK Retail Sales came in weaker than expected, while the previous month’s reading was revised lower. Meanwhile, preliminary August Purchasing Managers Index (PMI) data from both the UK and the Eurozone exceeded market forecasts.
Technical Analysis On the daily chart, EUR/GBP is capped beneath a dense band of medium- and long-term moving averages and Fibonacci levels, which keeps the near-term bias mildly bearish despite some stabilization in momentum. Price is sitting on the 50-day Simple Moving Average (SMA) around 0.8567. The Relative Strength Index (RSI) at around 53 is neutral, and the Moving Average Convergence Divergence (MACD) lines are slightly above zero with a flat histogram, suggesting subdued upside pressure rather than a decisive trend reversal.