EUR/GBP Technical Analysis: Bears take a breather as support at 0.8600 holds steady, bulls advance
EUR/GBP shows strength at 0.8600, up by 0.20%. Daily chart indicators highlight increased buying sentiment despite being negative territory. The position below main SMAs suggests underlining bear dominance in the long-term view.In Monday's session, the EUR/GBP pair is seen trading at 0.8600 with a gain of 0.20% and hit a high of 0.8615. The daily chart presents a mixed sentiment leaning towards bearish, as the bears seem to take a breather after two days of losses. However, the strong support at 0.8600 has curbed further downside. Still, the bearish bias is more evident in the four-hour chart, with sellers trimming some daily gains, indicating a potential continuation of the downward trend for the rest of the session.
The indicators on the daily chart show that the bearish impulse is taking a breather. The Relative Strength Index (RSI) is indicating a positive slope while remaining under 50, signifying that the bears are not done just yet. The bearish pressure is further confirmed when observing the Moving Average Convergence Divergence (MACD), which prints flat red bards. In addition, the cross trades below the trio of 20, 100, and 200-day Simple Moving Averages (SMAs) indicate that the overall trend still favors the sellers.
In the four-hour chart, the bearishness is marked more notably. The tilt towards the negative side emerges stronger as the Relative Strength Index (RSI) shows a negative slope in negative territory. Also, the decreasing green bars of the MACD enforce the impression of the bull’s momentum being weak and transitory. Despite a brief pause in the bearish continuation, the selling force continues to have a prevailing grip on the market, suggesting an ongoing potential for further downside in the next sessions.
EUR/GBP technical levels EUR/GBP daily chart