In a recent session, the EUR/GBP pair experienced further losses, dropping to 0.8425 as sellers maintained a bearish stance. This marks the sixth consecutive session of decline for the pair. Despite the negative outlook indicated by technical indicators, buyers intervened to support the pair above the crucial 0.8400 level after reaching a low of 0.8410.
The Relative Strength Index (RSI) currently stands at 40, while the Moving Average Convergence Divergence (MACD) shows rising red bars, indicating a strengthening bearish momentum. This alignment of indicators suggests a potential continuation of the downtrend.
Although the pair may see a rebound in the next few sessions after seven consecutive losses, the sustainability of this recovery will hinge on whether the 0.8400 support level holds. Traders should closely monitor this key level for potential shifts in market sentiment.
For a visual representation of the EUR/GBP daily chart, refer to the image below:
Analysis:
The EUR/GBP pair is currently in a downtrend, with sellers maintaining control and pushing the pair towards the 0.8400 mark. However, buyers have shown resilience by defending this key level, indicating a potential reversal in the near future. Technical indicators suggest a continuation of the bearish momentum, but a rebound could be on the horizon if the 0.8400 support holds. Traders should remain vigilant and monitor market developments closely to capitalize on potential opportunities.