EUR/GBP Price Analysis: Technical outlook favors the downside as selling pressure mounts

Source Fxstreet
  • EUR/GBP weakens further, and buying pressure continues to retreat.
  • The latest price action and technical indicators suggest that further downside is on the table.
  • The 0.8380 presents a strong barrier against the sellers.

Thursday's session saw the EUR/GBP slightly decline by 0.20% below 0.8400. Looking at the technicals the overall bias remains bearish as selling pressure intensifies, the cross must hold the 0.8380 line to avoid further losses.

The Relative Strength Index (RSI) is currently at 37 and is declining sharply in the negative area, indicating that selling pressure is rising. Moreover, the Moving Average Convergence Divergence (MACD) also suggests that selling pressure is rising, as the histogram is red and rising. 

EUR/GBP daily chart

Based on the current technical picture, the EUR/GBP is likely to continue trading lower and support levels can be found at 0.8380, 0.8350, and 0.8330.  Resistance levels can be found at 0.8430 (20-day SMA), 0.8450, and 0.8500. The 0.8380 is a strong support which if breached would mark a low since 2022 and would confirm a negative outlook for the cross.

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Forex Today: Japanese Yen rallies on reported intervention, US-Iran tensions remain highHere is what you need to know on Friday, May 1:
Author  FXStreet
13 hours ago
Here is what you need to know on Friday, May 1:
placeholder
AUD/USD jumps near 0.7200 as Japan’s intervention sinks the USDThe Australian Dollar reclaimed the 0.7200 level on Thursday, surging more than 1% as the Greenback dropped to seven-day lows amid Japanese authorities’ intervention in the FX markets, pushing aside solid US economic data. The AUD/USD trades past 0.7200 after hitting a daily low of 0.7110.
Author  FXStreet
20 hours ago
The Australian Dollar reclaimed the 0.7200 level on Thursday, surging more than 1% as the Greenback dropped to seven-day lows amid Japanese authorities’ intervention in the FX markets, pushing aside solid US economic data. The AUD/USD trades past 0.7200 after hitting a daily low of 0.7110.
placeholder
Bitcoin Briefly Falls Below $76,000: Will Powell Staying on Board Curb Rally? Fed maintains interest rates, Bitcoin price falls below $76,000 as Powell's stay may hinder rebound.On April 30 (GMT+8), Bitcoin ( BTC) narrowed its losses and returned above $76,000, cur
Author  TradingKey
Apr 30, Thu
Fed maintains interest rates, Bitcoin price falls below $76,000 as Powell's stay may hinder rebound.On April 30 (GMT+8), Bitcoin ( BTC) narrowed its losses and returned above $76,000, cur
placeholder
Brent Oil Breaks Through $120 Mark, Strait of Hormuz Deadlock Continues to Ferment, How Will Trump’s Choice Sway Oil Price Direction?Hopes for a resolution to the U.S.-Iran deadlock are fading, and the oil price rally continued during the Asian session. On Thursday, dampened by pessimistic news regarding peace talks, B
Author  TradingKey
Apr 30, Thu
Hopes for a resolution to the U.S.-Iran deadlock are fading, and the oil price rally continued during the Asian session. On Thursday, dampened by pessimistic news regarding peace talks, B
placeholder
Today’s Market Recap: Fed Dissent and AI Capex Surges Define Volatile Earnings Week The S&P 500 edged down 0.04% to 7,135.95, while the Nasdaq Composite gained a modest 0.04% to reach 24,673.24. Meanwhile, the Dow Jones Industrial Average declined 0
Author  TradingKey
Apr 30, Thu
The S&P 500 edged down 0.04% to 7,135.95, while the Nasdaq Composite gained a modest 0.04% to reach 24,673.24. Meanwhile, the Dow Jones Industrial Average declined 0
Related Instrument
goTop
quote