EUR/GBP Trapped Below Resistance

The EUR/GBP exchange rate has been trading below the key resistance level of 0.8580, but downside attempts have so far been limited.

The pair is consolidating in a narrow range during the European session on Tuesday, with buyers stepping in near 0.8540 to keep dips shallow and prevent sellers from pushing it lower.

The Relative Strength Index (RSI) on the daily chart shows a neutral-to-bullish bias, hovering around the 50 mark, indicating a lack of clear directional strength.

The market drivers behind this trading range are divergent central bank expectations, with the European Central Bank (ECB) possibly holding interest rates steady for longer and the Bank of England (BoE) potentially cutting rates sooner than previously anticipated.