In Friday’s trading session, the EUR/GBP pair experienced a slight decline of 0.15% to 0.8435, signaling a negative technical outlook. The consistent rejections at the 20-day Simple Moving Average indicate weak buyer traction, allowing bears to dominate the market.
The Relative Strength Index (RSI) currently stands at 44, in negative territory with a slight downward trend, indicating weakening buying momentum. The Moving Average Convergence Divergence (MACD) histogram shows diminishing red bars, suggesting a decrease in selling pressure. This combination of indicators points to a stable selling force while buying strength wanes.
Over the past few trading sessions, the EUR/GBP pair has been trading within a narrow range of 0.8425 to 0.8450, highlighting a lack of clear directional bias in the short term. A breakthrough below the immediate support level of 0.8425 could target levels of 0.8410 and 0.8400. Conversely, a move above 0.8450 (20-day SMA) could lead to further upside potential above 0.8470.
EUR/GBP Daily Chart
Analysis:
The EUR/GBP pair is currently experiencing bearish momentum, with sellers dominating the market. Buyers are struggling to overcome the 20-day Simple Moving Average, indicating a lack of strength in the bullish camp. The RSI and MACD indicators further confirm the negative outlook, with weakening buying momentum and decreasing selling pressure. Traders should closely monitor key support and resistance levels for potential entry and exit points. A breakthrough above the 20-day SMA could signal a shift in momentum towards the upside, while a breach below immediate support levels could lead to further downside potential.