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EUR/GBP Price Analysis: Technical outlook favors the downside as selling pressure mounts

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Fxstreet

Sep 19, 2024 4:00 PM

  • EUR/GBP weakens further, and buying pressure continues to retreat.
  • The latest price action and technical indicators suggest that further downside is on the table.
  • The 0.8380 presents a strong barrier against the sellers.

Thursday's session saw the EUR/GBP slightly decline by 0.20% below 0.8400. Looking at the technicals the overall bias remains bearish as selling pressure intensifies, the cross must hold the 0.8380 line to avoid further losses.

The Relative Strength Index (RSI) is currently at 37 and is declining sharply in the negative area, indicating that selling pressure is rising. Moreover, the Moving Average Convergence Divergence (MACD) also suggests that selling pressure is rising, as the histogram is red and rising. 

EUR/GBP daily chart

Based on the current technical picture, the EUR/GBP is likely to continue trading lower and support levels can be found at 0.8380, 0.8350, and 0.8330.  Resistance levels can be found at 0.8430 (20-day SMA), 0.8450, and 0.8500. The 0.8380 is a strong support which if breached would mark a low since 2022 and would confirm a negative outlook for the cross.

Disclaimer: For information purposes only. Past performance is not indicative of future results.