The EUR/GBP pair took a nosedive, breaking below the crucial 0.8500 support level, signaling a possible downtrend in the upcoming sessions. Bearish signals are on the rise, with the 0.8470 area posing as another obstacle for the bears.
On Thursday, EUR/GBP closed at 0.8490, marking a 0.30% decline. Technical indicators are painting a mixed picture, but the selling pressure seems to be gaining momentum. The Relative Strength Index (RSI) is at 49, hinting at a potential shift in momentum. The Moving Average Convergence Divergence (MACD) is showing increasing red bars, indicating a growing bearish trend. However, there is a lack of conviction among traders, as volume patterns are on the decline.
The outlook for EUR/GBP suggests a bearish trend with continued selling pressure. A sustained break below 0.8500 could reinforce the bearish sentiment, paving the way for further declines. Nevertheless, the 0.8470 level could act as a significant barrier for the bears. On the upside, buyers need to push the price above the 20 and 100-day Simple Moving Averages (SMA) around 0.8500-0.8550 to target the 0.8600 level.
EUR/GBP Daily Chart
Overall, the EUR/GBP pair is in a precarious position, with potential downside risk looming. Traders should closely monitor key support and resistance levels to navigate through the current market conditions and make informed decisions.