EUR/GBP technical analysis: Pullback likely on bearish divergence of RSI

• EUR/GBP's daily chart is reporting a bearish divergence of the RSI.
• The pair could drop to the 10-day MA support before the weekend.

EUR/GBP could drop to 10-day moving average (MA) at 0.9151, as the daily chart is reporting a bearish divergence of a key indicator.

The pair clocked a higher high of 0.9250 earlier this week, but the 14-day relative strength index (RSI) remained below the July 30 high of 73.50.

Put simply, the RSI has created a lower high, contradicting the higher high on the price chart.

That bearish divergence indicates the uptrend is running out of steam and a minor correction could be in the offing.

A strong bounce from the ascending (bullish) 10-day MA of 0.9150 would revive the bullish view.

Daily chart

Trend: Pullback likely

Pivot levels