EUR/GBP Price Analysis: Near-term bias tilts bearish as cross gives up 20-day SMA

Source Fxstreet
  • EUR/GBP remains in a range, unable to establish a clear trend.
  • Bearish divergence in technical indicators points to a shift in momentum.
  • The cross slid below 20-day SMA, but bears need a break below 0.8300 for conviction.

In Monday's session, the EUR/GBP declined and settled lower at around 0.8350, below the 20-day Simple Moving Average (SMA), a development that worsens the technical outlook and reinforce the short-term bearish bias

The EUR/GBP pair has been unable to sustain gains above the 0.8400 resistance level, indicating that the bulls are struggling to regain control. The Relative Strength Index (RSI) is currently at 45, indicating that the pair is in negative territory, below the 50-neutral threshold. Moreover, the RSI's decline suggests that selling pressure is intensifying.

The Moving Average Convergence Divergence (MACD) is also sending bearish signals. The MACD histogram is green and decreasing, indicating that buying pressure is waning.

 Support levels:  0.8320, 0.8300, 0.8280.
Resistance levels:  0.8390, 0.8400, 0.8430.

EUR/GBP daily chart

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