EUR/GBP Stuck in Sideways Trade Near 0.8500

The EUR/GBP currency pair is currently trading sideways around the 0.8500 level, having lost its earlier bullish momentum.

This lack of traction comes as no surprise, given that there are no fresh catalysts from either the European Central Bank or the Bank of England to drive the market.

The Relative Strength Index (RSI) on the daily chart has retreated from overbought levels, indicating fading bullish momentum. 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.

Immediate resistance lies at 0.8520 and the recent swing high near 0.8550, while support is seen at 0.8480 and the 50-day moving average around 0.8450.