The EUR/GBP pair experienced a decline of 0.20% on Thursday, bringing it close to the key support level of 0.8400. Despite remaining above this level, selling pressure is on the rise, as indicated by the daily RSI approaching oversold territory at 35.
Additional confirmation of the bearish trend can be seen in the red bars of the Moving Average Convergence Divergence (MACD) indicator. This suggests that the bearish momentum is gaining strength, further supporting the negative technical outlook for the pair.
If the bears successfully breach the 0.8400 support level, the next area of interest lies at 0.8380. However, a potential upward correction could occur if the pair manages to hold above 0.8400 and the RSI near 30. This would indicate a possible loss of bearish traction.
EUR/GBP Daily Chart Analysis
In conclusion, the EUR/GBP pair is currently facing downward pressure, with indicators aligning with a bearish trend. Traders should closely monitor the key support level of 0.8400 for potential breakout opportunities. A breach of this level could lead to further downside movement towards 0.8380, while a successful hold above 0.8400 may signal a temporary relief rally.