Technical Analysis – EURGBP gains some ground after falling to new 5-month low
May 10, 2023 10:27 am
EURGBP had a bullish start on Wednesday, after the price rebounded off the five-month low of 0.8675. The pair has been holding within a downward sloping channel since February and slipped below the 200-day simple moving average (SMA), confirming a negative structure in the medium-term timeframe as well.
The momentum signals are bearish as well as the RSI remains in negative territory after failing to break below its 30 neutral mark. The MACD oscillator is strengthening its bearish momentum beneath its trigger and zero lines.
Should the price extend declines, the 0.8645 level could be the next support level, taken from the highs in December. If that barrier permits further weakness, the next stop could be around 0.8560, endorsing the bearish structure.
On the other hand, a recovery could retest the 0.8720 key mark before attention turns to the 200-day SMA at 0.8735. Moving higher, the 20- and the 50-day SMAs around 0.8800 should attract attention ahead of the upper boundary of the channel at 0.8820.
Turning to the medium-term picture, the bearish outlook came back into play after the breach of the 200-day SMA.
EURGBP had a bullish start on Wednesday, after the price rebounded off the five-month low of 0.8675. The pair has been holding within a downward sloping channel since February and slipped below the 200-day simple moving average (SMA), confirming a negative structure in the medium-term timeframe as well.
The momentum signals are bearish as well as the RSI remains in negative territory after failing to break below its 30 neutral mark. The MACD oscillator is strengthening its bearish momentum beneath its trigger and zero lines.
Should the price extend declines, the 0.8645 level could be the next support level, taken from the highs in December. If that barrier permits further weakness, the next stop could be around 0.8560, endorsing the bearish structure.
On the other hand, a recovery could retest the 0.8720 key mark before attention turns to the 200-day SMA at 0.8735. Moving higher, the 20- and the 50-day SMAs around 0.8800 should attract attention ahead of the upper boundary of the channel at 0.8820.
Turning to the medium-term picture, the bearish outlook came back into play after the breach of the 200-day SMA.
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