EUR/GBP trades neutral, bears still in charge
- EUR/GBP trades neutral at 0.8597, set to close a third straight weekly loss.
- Key technical indicators suggest a bearish momentum, despite slight gains, with RSI and MACD on the daily chart in negative.
- Mixed readings are seen on the four-hour indicators.
In Friday's session, the EUR/GBP pair was observed trading flat at around 0.8600. From a broader perspective, the daily chart showcases a neutral to bearish sentiment, with bears firmly defending their territory. Additionally, in the four-hour timeframe, the indicators present a mixed landscape.
Looking at the daily chart indicators, the prevailing force is evidently the selling momentum. The Relative Strength Index (RSI) is leveling off in the negative territory, which is usually a signal for a possible continuation of a downward trend. Moreover, with the Moving Average Convergence Divergence (MACD) showing flat red bars, there is a clear indication of sustained bearish action.
Furthermore, the pair is located under its 20, 100, and 200-day Simple Moving Averages (SMAs), which signifies the controlled supremacy of sellers over an extensive time frame. Given this current state, any reversal to the upside will need a significant effort from buyers.
Moving on to the shorter time frame and focusing on the four-hour chart, a similar pattern in indicators to the daily chart, with both the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) presenting a rather flat and inactive landscape in the negative sector. This state of affairs suggests that the bears are still holding their positions and maintaining tight control over the buyers.
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.
