EURGBP fell sharply today from Tuesday’s 5-month high but the near-term bias is looking mixed. RSI is falling but comfortably above 50. However, the stochastics are in overbought territory and have just made a bearish cross, signalling further possible losses in the coming days.

In the medium term, the outlook has turned bullish after prices climbed back above the 200-day moving average. A bullish cross of the 50-day moving average with the 100-day moving average also supports the positive picture. Further gains would help strengthen the bullish outlook as the Tenkan-sen and Kijun-sen lines are currently overlapping. The May 7 high of 0.7483 is the key resistance to look out for if the pair extends its recent gains.

On the downside, the 200-day moving average continues to serve as the nearest support level around 0.7280 but a break below the current trendline would signal a possible shift into bear territory.