Eurgbp Faces Bearish Momentum

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Eurgbp Faces Bearish Momentum

Eur/Gbp Faces Bearish Momentum Below 20 Sma

EUR/GBP has extended its bearish move on Tuesday and even extended the decline from Monday. In the process, the EUR/GBP has fallen to 0.8330 level with a change of -0.30% for the day.

The recent weakness in the EUR/GBP has confirmed that the short-term bias is now negative. Also, the EUR/GBP cross is below the 20 SMA on the daily chart.

Eur/Gbp: 20 Dma Acts As Dynamic Resistance

This means that the 20 DMA is now acting as a dynamic resistance and will likely push the EUR/GBP lower towards the next support levels.

It all started when the bulls of EUR/GBP failed to reclaim the 0.8400 handle. This gave confidence to the bears, who have now pushed the cross lower.

Also the RSI also showed a sharp drop and is now printing values in the negative territory. Right now, the RSI indicator on the EUR/GBP chart is under 40. That's a sign that the EUR is under pressure while the GBP is securing gains.

The readings from the RSI can be confirmed by the MACD which is also telling a similar picture. The EUR/GBP chart shows that the MACD histogram is still green, but the bars are now decreasing. That's a sign that bullish momentum is slowly fading away in the EUR/GBP.

In order for the bears to push the EUR/GBP lower, a break of the support at 0.8300 will be needed. According to experts, if the cross breaks this key support, it would be a sign that the next target is now 0.8280.

In terms of support, the first one is at 0.8320, and the next one is around 0.8300. Once the 0.8300 handle is lost to the bears, the next support levels will be 0.8280 and then 0.8250.

As for the next resistance levels, the first one is seen at 0.8360, followed by the next one at 0.8400. Out of these 2, the resistance at 0.8400 will be more tough to crack.

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