The EUR/GBP pair continued its downward trend on Friday, breaking below the key 0.8500 support level. This move indicates a potential downtrend, with technical indicators pointing towards further losses.
Currently trading at 0.8470, the pair has erased a significant portion of its August gains, which had pushed it above 0.8600. The daily Relative Strength Index (RSI) is at 44, signaling a shift in momentum towards the sellers. Additionally, the Moving Average Convergence Divergence (MACD) is showing increasing bearish pressure.
If the pair fails to hold above 0.8470, it could target the 0.8370 level, last seen in late July. However, a recovery above 0.8500 could lead to gains towards 0.8550.
EUR/GBP Daily Chart Analysis
Analysis:
The EUR/GBP pair is currently in a downward trend, with the potential to reach the 0.8370 level if selling pressure persists. Traders should watch for a break below 0.8470 as a signal for further losses. A recovery above 0.8500 could signal a bullish reversal towards 0.8550.