EURGBP Downtrend Continues as Bearish Forces Linger


EURGBP continues its downward trend and has yet to break its series of successive lower lows as negative forces remain. Moreover, the pair is trading well below the 50- and 200-day simple moving averages (SMAs), while maintaining a general bearish outlook.

Short-term momentum indicators reflect a negative bias as the RSI is below its 50-neutral mark. In addition, the MACD is below zero and its red signal line indicates that the negative momentum could gain additional ground.

If the bears hold control, initial resistance could be found at the 0.8304 hurdle before sellers shift their attention to the 0.8284 hurdle. Crossing below the latter could intensify selling pressures, opening the door to the July 2016 low at 0.8248.

On the other hand, if buyers reappear, their first target could be the region, which includes the 0.8378 level and the 50-day SMA, before looking at the October low at 0.8401. A decisive move above this point could increase positive momentum, sending the price to test the February high at 0.8477, before targeting the region that encapsulates the 200-day SMA currently at 0.8493 and the 0.8500 hurdle.

In short, the overall outlook for the pair is bearish. For that sentiment to change, buyers should break above the 200-day SMA.




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