EUR/GBP technical analysis: Bearish momentum is weakening

EUR/GBP could be in for a minor corrective bounce to 0.89.
Daily chart indicator shows the bearish momentum has likely run out of steam.

Omkar Godbole FXStreet Contributor

EUR/GBP could be in for a minor bounce, as the key indicator shows the bearish momentum has weakened.

The daily chart moving average convergence divergence (MACD) histogram has created higher lows in the last few days, contradicting lower lows on EUR/GBP.

That divergence indicates the bearish move is losing traction. Also, on Tuesday, the pair created an inverted hammer candle at the 200-day moving average support, indicating seller exhaustion near key support.

The pair, therefore, could rise to 0.89 in a day or two. As of writing, EUR/GBP is trading at 0.8861, representing little change on the day.

The case for a bounce would weaken if the pair drops below Tuesday's low of 0.8838.

Daily chart

Trend: Corrective bounce

Technical levels

EUR/GBP

Overview
Today last price	0.8861
Today Daily Change	0.0003
Today Daily Change %	0.03
Today daily open	0.8858

Trends
Daily SMA20	0.9001
Daily SMA50	0.9061
Daily SMA100	0.8944
Daily SMA200	0.8841

Levels
Previous Daily High	0.8892
Previous Daily Low	0.8838
Previous Weekly High	0.9016
Previous Weekly Low	0.8852
Previous Monthly High	0.9326
Previous Monthly Low	0.9016
Daily Fibonacci 38.2%	0.8871
Daily Fibonacci 61.8%	0.8859
Daily Pivot Point S1	0.8833
Daily Pivot Point S2	0.8809
Daily Pivot Point S3	0.878
Daily Pivot Point R1	0.8887
Daily Pivot Point R2	0.8916
Daily Pivot Point R3	0.894

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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