EUR/GBP Price Analysis: Sellers hit the gas and take further ground

Source Fxstreet
  • EUR/GBP weakens further, and buying pressure continues to retreat.
  • The RSI is moving dangerously near the oversold threshold.
  • The 0.8380 presents a strong barrier against the sellers.

In Friday's session, the EUR/GBP pair continued to decline, losing 0.15% to close at 0.8385. The bearish outlook persists, as selling pressure intensifies and technical indicators signal a negative trend.

Looking at the technical outlook, the Relative Strength Index (RSI) has fallen to 35, moving deeper into the negative area. This sharp decline indicates that selling pressure is rising. Furthermore, the Moving Average Convergence Divergence (MACD) histogram remains red and rising, also suggesting increasing bearish momentum. 

EUR/GBP daily chart

Based on the current technical picture, the EUR/GBP pair is likely to continue its downward trajectory. Support levels can be found at 0.8380, 0.8350, and 0.8330. If the pair breaks below 0.8380, it could signal a deeper decline toward 0.8350. Resistance levels can be found at 0.8420 (20-day Simple Moving Average (SMA)), 0.8430, and 0.8440. A break above 0.8440 could indicate a potential trend reversal.

Overall, the technical indicators and recent price action suggest that the bearish momentum is likely to continue in the short term. As bears point their cannons towards 0.8380, a break below would mark a fresh yearly low, which would confirm a bearish outlook.

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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Author  FXStreet
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