EUR/GBP technical analysis: Sell-off looks to have stalled below 200-day MA

• The EUR/GBP sellers are looking exhausted below the 200-day moving average. 
• The daily MACD histogram is reporting a bullish divergence. 
• The pair may chart a minor bounce to levels above the 10-day moving average. 

EUR/GBP's sell-off from Aug. 12's high of 0.9324 seems to have run out of steam below the 200-day moving average (MA). 

That is evident from the pair's sideways action below the 200-day MA since Monday. 

The higher lows or the bullish divergence of the moving average convergence divergence (MACD) histogram also indicates that sellers have run out of steam. 

As a result, a bounce could be in the offing, possibly to levels above the 10-day MA, currently at 0.8850. As of writing, the EUR/GBP pair is trading at 0.8825, representing marginal gains on the day. The 200-day MA is currently located at 0.8834. 

A convincing close above the 10-day MA would neutralize the bearish setup and could be followed by a sideways to positive action. Meanwhile, a strong rejection at the 200-day MA will likely invite fresh selling pressure. 

Daily chart

Trend: Bounce likely

Technical levels