The EUR/GBP pair is currently on a four-day losing streak, hitting its lowest levels in over a week, as bearish sentiment continues to dominate the market. At the time of writing, the pair has plunged to around 0.8310, with the psychological 0.8300 level looming as a significant support area. Despite this, technical indicators signal the possibility of further downside movement, reinforcing the prevailing negative outlook.
The EUR/GBP’s recent decline marks a decisive break below its 20-day Simple Moving Average (SMA), a key indicator of short-term trend direction. This break has opened the door to multi-week lows, suggesting that the pair’s downtrend remains intact. Adding to the bearish picture, the Relative Strength Index (RSI) currently stands at 42, dipping further into negative territory. The RSI’s slight downward slope indicates a growing momentum for sellers, which could push the pair lower if current conditions persist.
Furthermore, the Moving Average Convergence Divergence (MACD) continues to print rising red bars, signaling increasing selling pressure. The MACD’s trajectory, combined with the elevated volume, strengthens the case for further weakness in the EUR/GBP pair. This suggests that any upward retracements could be short-lived, as the market remains firmly in a bearish phase.
Also read : EUR/GBP Struggles Near 0.8300 As Market Awaits BoE’s 25bps Rate Cut, German Industrial Production Declines 2.5% In September
Despite the technical signals pointing to more downside potential, the 0.8300 mark is expected to provide some support, as it represents a key psychological level. A failure to hold above this level could open the door to even deeper losses, potentially targeting the next support levels. Traders will be closely monitoring this region for signs of a reversal or further bearish movement.
In the short term, the outlook for EUR/GBP remains bearish, with a strong risk of further declines as the technical indicators continue to favor the downside. However, any bullish reversal would require a break above the 0.8400 region, which seems unlikely in the current environment.
