EUR/GBP has completed its pullback and is back on its bearish trajectory, breaking below the September 24 low of 0.8317 and targeting the next support level at 0.8287, the August 2022 low. The currency pair remains in a downtrend in the short and medium term, with the trend favoring further downward movement.
Despite the bearish sentiment, the Relative Strength Index (RSI) is showing a bullish convergence with price, indicating a lack of downside momentum with the recent sell-off. This suggests the possibility of a stall or even a pullback in the near future. EUR/GBP has already met the conservative target for the bearish move that started from the August 5 high at 0.8322, signaling a potential end to the downward trend.
The daily chart for EUR/GBP highlights the ongoing bearish momentum and the potential for further downside movement towards the next support level at 0.8287. The RSI convergence with price adds a level of uncertainty to the current outlook, suggesting a possible pause or reversal in the downward trend. However, given the overall downtrend, the odds still favor a continuation of the bearish move in the near term.
Traders and investors monitoring EUR/GBP should pay close attention to the key support level at 0.8287, as a break below this level could signal a further extension of the downtrend. The lack of bearish momentum accompanying the recent sell-off raises the possibility of a temporary pause or reversal in the downward movement. As the currency pair continues to navigate its bearish trajectory, traders should remain vigilant and adjust their strategies accordingly based on the evolving market conditions.
In conclusion, EUR/GBP has resumed its bearish momentum after completing a pullback and breaking below a key support level. The RSI convergence with price indicates a potential lack of downside momentum with the recent sell-off, raising the possibility of a pause or reversal in the ongoing downtrend. Traders should closely monitor the next support level at 0.8287 for further clues on the future direction of EUR/GBP and adjust their trading strategies accordingly.
