EUR/GBP Price Analysis: Negative trend continues, downside risks prevail
- EUR/GBP pair is on a four-day losing streak, reaching lows not seen in over a week
- The MACD's rising red bars and declining RSI indicate increasing bearish momentum, suggesting further weakness for the pair.
- Pair has broken deep below its 20-day SMA, reaching multi-week lows.
The EUR/GBP fell towards 0.8310 as sellers continue pushing downwards but will face strong support at the psychological 0.8300 area.
The cross has been on a downward trajectory, breaking below its 20-day SMA and reaching multi-week lows. Technical indicators such as the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) confirm this bearish trend, signaling increasing selling momentum. The pair has recorded four consecutive days of losses, indicating that the selling pressure is intensifying, and further declines are possible.
The RSI is currently in negative territory at 42, with a mildly declining slope, implying that sellers are gaining momentum. The MACD's rising red histogram and elevated volume further support the bearish sentiment, indicating that bearish forces are dominating the market.
Support levels: 0.8300, 0.8275, 0.8250.
Resistance levels:0.8330, 0.8350, 0.8375.
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.
