EUR/GBP Consolidation Continues Near 0.8500

The EUR/GBP exchange rate has stalled near the 0.8500 level, losing its earlier upward momentum and consolidating in a narrow range.

This consolidation is due to the lack of fresh catalysts from either the European Central Bank or the Bank of England, leaving markets digesting mixed economic data from both economies.

Technical indicators on the daily chart show fading bullish momentum, with the Relative Strength Index (RSI) retreating from overbought levels. The pair remains supported by the 20-day moving average, but a break below that could open the door for a test of lower supports.