EUR/GBP trimms daily gains and bullish momentum weakens, eyes on bearish SMA crossover
- EUR/GBP trades mildly lower at 0.8596 after hitting a high of 0.8620.
- Daily chart indicators hint at strengthening selling momentum: RSI is in negative terrain, and MACD's histogram depicts rising red bars.
- The four-hour chart affirms a bearish outlook with weakened bullish power.
In Tuesday's session, the EUR/GBP was observed trading mildly lower at 0.8596 after hitting a daily high of 0.8621 as the bulls struggled to hold their momentum. In the four-hour chart, the selling dominance is more evident.
Indicators on the daily chart are reflecting a bearish dominance currently in play. The negative Relative Strength Index (RSI) slope, in conjunction with its present location in the negative territory, underscores the strengthened bearish momentum. Concurrently, the red bars of the Moving Average Convergence Divergence (MACD) supplement this bearish tilt. In addition, the pair's position below the 20, 100, and 200-day Simple Moving Averages (SMAs) reiterates the widespread bearish control, creating a tough landscape for buyers to recuperate. In addition, the 200 and 100-day averages are about to perform a bearish crossover at around 0.8650, which may add further momentum to the sellers.
In the shorter time frame, as denoted by the four-hour chart, the bears appear to have an even greater grip. The negative slope and negative territory of the four-hour RSI amplify the bearish trend, indicating that sell-offs are predominant at this juncture. Similarly, the rising red bars of the four-hour MACD underpin a growing downtrend in the short-term outlook.
EUR/GBP technical levels
EUR/GBP daily chart
-638410183893952184.png&w=1536&q=95)
Author
Patricio Martín
FXStreet
Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.
