EUR/GBP bullish outlook softens as bears threaten the 200-day SMA
- The EUR/GBP suffers losses, positioned at 0.8660 with a decline of 0.30%.
- Daily chart indicators reveal signs of bearish momentum with RSI's negative bias and MACD's waning positive momentum.
- Despite a temporary bearish outlook, the broader term sees bulls in control.
- The Cross will close a 2% yearly loss.
In Friday's session, the EUR/GBP slipped down to 0.8660, shedding a small 0.30%. Breathing room for bearish activities emerged after the pair gained 1% last week. Both daily and four-hour charts signal a neutral to bullish bias, with buyers slightly dominating and significant strides marked in the four-hour indicators.
The degrading slope of the Relative Strength Index (RSI) on positive ground suggests that the buying momentum has slowed down. The green bars of the Moving Average Convergence Divergence (MACD) display a declining pattern, indicating a transition from bullish to bearish momentum. However, divergently, the pair is hovering above its 20,100,200-day Simple Moving Averages (SMAs). This underpins a bullish longer-term narrative despite the short-term indicators predominately leaning toward the sellers, especially after the near 1% weekly gain.
Shifting the focus to the shorter time frame, the four-hour chart, the bears covered some considerable territory. The Relative Strength Index (RSI), showing a downward inclination, is in negative territory, pointing out an intensified bearish momentum aligning with the decreasing green bars in the Moving Average Convergence Divergence (MACD), echoing the dominant selling force.
Support Levels: 0.8655 (200-day SMA), 0.8640 (100-day SMA), 0.8620 (20-day SMA).
Resistance Levels: 0.8700, 0.8750, 0.8800.
EUR/GBP daily chart
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Author
Patricio Martín
FXStreet
Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.
