EUR/GBP Price Analysis: Bears halt bulls movements, further downside on the horizon
- EUR/GBP hovers at 0.8590, experiencing a 0.17% loss as bears gain ground.
- The bulls managed to push the cross to 0.8620 earlier in the session but failed to hold the momentum.
- Indicators from the daily chart project bearish sentiment.
- The four-hour chart reinforces bearish bias with RSI nearing oversold territory.
In Monday's session, the EUR/GBP trades at 0.8589, down by 0.17%. The daily chart conveys a bearish outlook, with bears progressively gaining ground. This downbeat vibe is more apparent in the four-hour chart, where indicators are deep in negative territory.
The negative slope and territory of the Relative Strength Index (RSI) reflect that sellers dominate the current chart. This bearish trend is further reinforced by the cross's position, which is lodged below the key Simple Moving Averages (SMAs) - 20, 100, and 200-day, a clear indication that there is a significant hurdle for potential buyers as the bears have taken the reins. Furthermore, the rising red bars of the Moving Average Convergence Divergence (MACD) insinuate an ongoing bearish momentum, symbolizing a negative outlook for the bulls.
Zooming into the four-hour chart, the bearish dominance is strikingly clear. The RSI is approaching oversold levels, which often indicates an overwhelming amount of selling activity but is often followed by an upward correction. Concurrently, the rising red bars of the four-hour Moving Average Convergence Divergence (MACD) reiterates the strength of the selling momentum.
EUR/GBP technical levels
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.
