The EUR/GBP currency pair has experienced losses, currently positioned at 0.8660 with a decline of 0.30%. Daily chart indicators reveal signs of bearish momentum, with the Relative Strength Index (RSI) displaying a negative bias and the Moving Average Convergence Divergence (MACD) indicating waning positive momentum. However, despite this temporary bearish outlook, the broader term still sees bulls in control, with the pair set to close a 2% yearly loss.
In Friday’s session, the EUR/GBP slipped down to 0.8660, shedding a small 0.30% after gaining 1% the previous week. Both the daily and four-hour charts signal a neutral to bullish bias, with buyers slightly dominating and significant strides marked in the four-hour indicators. However, the degrading slope of the RSI on positive ground suggests that the buying momentum has slowed down. Additionally, the declining pattern of the green bars in the MACD indicates a transition from bullish to bearish momentum.
Despite the short-term indicators leaning towards sellers, the pair is still hovering above its 20, 100, and 200-day Simple Moving Averages (SMAs). This suggests a bullish longer-term narrative, especially considering the near 1% weekly gain. The support levels to watch out for are 0.8655 (200-day SMA), 0.8640 (100-day SMA), and 0.8620 (20-day SMA). However, it is crucial to monitor the resistance levels at 0.8700, 0.8750, and 0.8800 for potential shifts in market sentiment.
When shifting the focus to the shorter time frame, the four-hour chart reveals that the bears have covered some considerable territory. The RSI, showing a downward inclination, is now in negative territory, indicating an intensified bearish momentum. This aligns with the decreasing green bars in the MACD, further confirming the dominance of the selling force in the market.
The EUR/GBP currency pair is currently experiencing losses, with bearish momentum gaining strength. The short-term indicators suggest a decline in buying momentum, while the longer-term outlook still favors the bulls. It is important for traders to closely monitor the support and resistance levels as potential turning points in the market. While the bearish momentum is evident in the shorter time frame, it is essential to consider the broader narrative to make informed trading decisions. Stay tuned for further developments in the EUR/GBP pair as it navigates through market fluctuations.
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