EUR/GBP Pair Faces Selling Pressure, Technical Indicators Signal Decline
- The EUR/GBP pair extended its losses on Monday, declining to 0.8425.
- Technical indicators, including the RSI and MACD, suggest that selling pressure is increasing.
- Bulls failed to conquer the 20-day SMA which paved the way for the downside.
On Monday, the EUR/GBP pair saw a 0.15% decline, reaching 0.8425. Recent price action indicates a shift towards selling pressure, with key technical indicators pointing towards potential downside momentum. Let’s delve deeper into the analysis:
Technical Analysis
Relative Strength Index (RSI)
The RSI is currently at 43, with a sharp declining slope, signaling an increase in selling pressure. This suggests that market sentiment is shifting towards bearish territory.
Moving Average Convergence Divergence (MACD)
The MACD indicator shows a flat trend with a green histogram, indicating a lack of strong buying momentum. This aligns with the RSI’s bearish signal, reinforcing the potential for further downside movement.
20-Day SMA Resistance
The failure of bulls to surpass the 20-day Simple Moving Average (SMA) at 0.8445 acted as a pivotal point, leading to increased selling pressure and a downward trajectory for the pair.
EUR/GBP Daily Chart Analysis
The EUR/GBP pair has been range-bound between 0.8425 and 0.8450 in recent trading sessions, indicating a lack of clear market direction. Key levels to watch include:
- If the pair breaks below immediate support at 0.8425, it could target levels at 0.8410 and 0.8400.
- A successful break above the 20-day SMA at 0.8445 may open up opportunities for an upward move towards 0.8470.
Conclusion
The EUR/GBP pair is currently under selling pressure, as indicated by the RSI and MACD signals. The failure to overcome the 20-day SMA resistance suggests a bearish outlook for the pair. Traders and investors should closely monitor key support and resistance levels to gauge potential price movements and adjust their strategies accordingly.