Technical Analysis – EURGBP moves sideways after significant plunge
EURGBP fails to extend negative structure
20- and 200-SMAs post death cross
EURGBP is stubbornly fighting the nearby 0.8555 support level for the fifth consecutive trading day, after the strong sell-off from the 0.8765 resistance. The pair is holding well below the penetrated uptrend line and the 20- and the 200-day simple moving averages (SMAs) are ready for a death cross.
The technical picture suggests a neutral-to-bearish bias at the moment as the MACD remains negatively charged below its trigger line, while the RSI is currently flattening near the 30 level.
If the market retreats further and crosses beneath the immediate level of 0.8555, then the price could meet the 0.8523 barrier ahead of the 0.8490 bottom.
In the positive scenario where the price moves higher, the 0.8610 mark could be the next target before challenging the 0.8650 resistance and the bearish cross of the SMAs around 0.8670. A jump above these levels may switch the outlook to positive, hitting the uptrend line again at 0.8710.
As regards the very short-term outlook, EURGBP is maintaining a neutral trajectory. A move below 0.8555 could confirm the recent bearish structure.
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
