EUR/GBP Continues Decline, Reaches 0.8330
The EUR/GBP pair saw further losses on Tuesday, dropping to 0.8330, marking a 0.30% decline for the day. This downward trend reinforces the negative short-term bias, especially as the cross remains below the 20-day Simple Moving Average (SMA), which now acts as a resistance level.
Indicators Signal Weakness
- RSI in Negative Terrain: The Relative Strength Index (RSI) is deep in negative territory, below 40, indicating increased selling pressure and a lack of buying momentum.
- Bearish MACD Signals: The Moving Average Convergence Divergence (MACD) is emitting bearish signals, with decreasing histogram bars suggesting fading bullish momentum.
Short-Term Bias Remains Negative
The inability of the bulls to reclaim the 0.8400 resistance level highlights the weakness in buying momentum. As long as the cross holds below the 20-day SMA, the short-term bias will continue to be negative.
For bears to maintain control, a decisive break below the 0.8300 support level is needed to confirm the downtrend.
Support levels: 0.8320, 0.8300, 0.8280
Resistance levels: 0.8360, 0.8390, 0.8400
EUR/GBP Daily Chart
Analysis:
The EUR/GBP pair’s decline to 0.8330 signifies a continued bearish trend, with indicators pointing towards further weakness. The RSI and MACD both signal selling pressure and fading bullish momentum, indicating a lack of support for the pair.
Investors should closely monitor the 0.8300 support level, as a break below this could confirm the downtrend and lead to further losses. Resistance levels at 0.8360, 0.8390, and 0.8400 will serve as key barriers for any potential upside movement.
Overall, the EUR/GBP pair’s current position below the 20-day SMA suggests a negative short-term bias, emphasizing the importance of careful risk management and strategic decision-making in trading this currency pair.