• The cross is oscillating in a wider range that is indicating a prolonged consolidation.
• Momentum oscillator RSI (14) is facing resistance at 60.00.
• Euro bulls are firmer above the trendline placed from 0.8250.

The EUR/GBP pair has struggled while overstepping Tuesday’s high at 0.8430 as the volatility contraction ahead of the Fed’s monetary policy announcement has paused the Fx domain. The cross is experiencing significant barricades above 0.8450 and has been dragged lower on multiple failed attempts.

A wide consolidation range has been witnessed in a 0.8367-0.8467 gamut on the hourly scale. Usually, a wide consolidation range denotes range-bound moves for a longer period. The trendline placed from April 14 low at 0.8250, adjoining  April 20 low at 0.8289 and May’s low at 0.8367 respectively, will continue to act as major support going forward.

The 20- and 50-period Exponential Moving Averages (EMAs) at 0.8420 and 0.8410 respectively are overlapping each other, which signals a lackluster performance.

Also, the Relative Strength Index (RSI) (14) is struggling to overstep 60.00 decisively, indicating directionless trading sessions ahead.

Should the asset violates the upper boundary of the consolidation range at 0.8460, a bullish momentum will get triggered, which will drive the asset towards the psychological resistance of 0.8500, followed by a 20 December 2021 high at 0.8550.

On the flip side, pound bulls may regain control if the asset drops below the 50-EMA at 0.8410. This will drag the asset towards Tuesday’s low and April 20 high at 0.8373 and 0.8335 respectively.

EUR/GBP hourly chart