The EUR/GBP pair experienced continued losses on Friday, with the pair falling by 0.18% to reach 0.8470. This decline comes after the pair dropped below the key support level of 0.8500, erasing a significant portion of the gains that were made in August when the pair reached a high above 0.8600.
Technical indicators are sending mixed signals, with the daily Relative Strength Index (RSI) dropping to 44, indicating that momentum is shifting in favor of the sellers. Additionally, the Moving Average Convergence Divergence (MACD) is showing rising red bars, suggesting that bearish pressure is increasing.
If the EUR/GBP pair fails to hold above the 0.8470 level, there is potential for it to drop even further to 0.8370, which was the bottom reached in late July. However, if selling pressure eases and the pair manages to recover above 0.8500, it could see gains up to 0.8550.
Looking at the daily chart for EUR/GBP, it is evident that the pair is in a downward trend, with the recent losses further solidifying this movement. The breach of the 0.8500 support level indicates a shift towards a potential downtrend, with the 0.8370 level being a likely target for the bears as they seek to clear the gains made in August.
Overall, the EUR/GBP pair is facing continued pressure from sellers, with technical indicators pointing towards a strengthening bearish trend. As the pair hovers around the 0.8470 level, traders will be keeping a close eye on whether it holds above this support or continues its descent towards 0.8370. A recovery above 0.8500 could signal a potential reversal in the trend, leading to gains up to 0.8550.
