EUR/GBP Price Analysis: Bears lead and breach the 0.8500 support
- EUR/GBP lost ground and fell below the 0.8500 support level.
- Bearish signals rise, indicating a possible downtrend in the next session.
- The 0.8470 area is another barrier for the bears.
On Thursday, the EUR/GBP pair continued its downward trend, losing 0.30% to finish at 0.8490. Technical indicators present a mixed outlook, with selling forces appearing to be taking command.
The Relative Strength Index (RSI) has declined to 49, which might signal a momentum shift. Meanwhile, the Moving Average Convergence Divergence (MACD) is displaying rising red bars, suggesting a growing bearish momentum. Volume patterns have been decreasing, with a lack of conviction among market participants.
The EUR/GBP pair is facing a potential bearish trend, with selling pressure likely to persist. A consolidation below the key 0.8500 support would strengthen the bearish bias and create opportunities for further declines. However, the 0.8470 area would present another strong wall to the bears. On the upside, the buyers must recover and consolidate convergence between the 20 and 100-day Simple Moving Averages (SMA) around 0.8500-0.8550. A move above this level would open the path towards 0.8600.
EUR/GBP daily chart
Author
Patricio Martín
FXStreet
Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.
