EUR/GBP Technical Analysis: Bears take a breather as support at 0.8600 holds steady, bulls advance
|- EUR/GBP shows strength at 0.8600, up by 0.20%.
- Daily chart indicators highlight increased buying sentiment despite being negative territory.
- The position below main SMAs suggests underlining bear dominance in the long-term view.
In Monday's session, the EUR/GBP pair is seen trading at 0.8600 with a gain of 0.20% and hit a high of 0.8615. The daily chart presents a mixed sentiment leaning towards bearish, as the bears seem to take a breather after two days of losses. However, the strong support at 0.8600 has curbed further downside. Still, the bearish bias is more evident in the four-hour chart, with sellers trimming some daily gains, indicating a potential continuation of the downward trend for the rest of the session.
The indicators on the daily chart show that the bearish impulse is taking a breather. The Relative Strength Index (RSI) is indicating a positive slope while remaining under 50, signifying that the bears are not done just yet. The bearish pressure is further confirmed when observing the Moving Average Convergence Divergence (MACD), which prints flat red bards. In addition, the cross trades below the trio of 20, 100, and 200-day Simple Moving Averages (SMAs) indicate that the overall trend still favors the sellers.
In the four-hour chart, the bearishness is marked more notably. The tilt towards the negative side emerges stronger as the Relative Strength Index (RSI) shows a negative slope in negative territory. Also, the decreasing green bars of the MACD enforce the impression of the bull’s momentum being weak and transitory. Despite a brief pause in the bearish continuation, the selling force continues to have a prevailing grip on the market, suggesting an ongoing potential for further downside in the next sessions.
EUR/GBP technical levels
EUR/GBP daily chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.