In the latest trading session, the EUR/GBP pair continued its downward trend, breaking below the key 0.8500 support level to reach 0.8460.
The Relative Strength Index (RSI) has dropped to 42, signaling a shift towards bearish sentiment, although the selling momentum appears to be slowing down. Meanwhile, the Moving Average Convergence Divergence (MACD) indicator is showing increasing red bars, indicating a consistent bearish pressure on the pair.
Despite a decrease in trading volume, there is a lack of conviction among traders. The pair has been forming lower lows, indicating that the bears are currently in control, but facing resistance around the 0.8450-0.8500 range. With momentum stabilizing after four consecutive losing sessions, the pair may enter a consolidation phase as sellers pause to reassess their positions.
EUR/GBP Daily Chart
Analysis:
The EUR/GBP pair is facing downward pressure, with bears targeting the 0.8450 support level. While selling momentum has eased slightly, the overall trend remains bearish. Traders should monitor the RSI and MACD indicators for potential shifts in market sentiment. A break below 0.8450 could signal further losses, while a rebound above 0.8500 may indicate a reversal in the pair’s fortunes. It’s important for investors to stay informed and adapt their strategies accordingly to navigate the current market conditions.