EUR/GBP slips past 50 and 20-day EMAs, reflecting increased bearish sentiment, trading 0.src4% below the opening.
EUR/GBP’s breaking daily EMAs and one-month-old support trendline, deeper losses loom for the cross as sellers gain momentum.
A close below 0.8600 could accelerate the slide toward July 27 swing low, with a focus on the year’s lowest point. Immediate resistance at 0.8600-0.86src0 zone.
The EUR/GBP dropped for the third consecutive day, extending its losses past the 50 and 20-day Exponential Moving Averages (EMAs), the last time seen each at 0.86src0 and 0.8603. At the time of writing, the EUR/GBP is trading at 0.8582, below its opening price by 0.src4%.
EUR/GBP Price Analysis: Technical outlook
The EUR/GBP is trading sideways, slightly tilted to the downside, after prices fell below all the daily Exponential Moving Averages (EMAs), opening the door for further losses. Notably, the EUR/GBP fell to a new two-week low, and on its way down, it has broken a one-month-old support trendline drawn from the yearly lows, suggesting that sellers are gathering momentum.
If EUR/GBP achieves a daily close below 0.8600, the cross could extend its downtrend to the July 27 swing low of 0.8544 before challenging the year-to-date (YTD) low of 0.8504.
On the flip side, if EUR/GBP buyers reclaim 0.8600, the first resistance levels would be the 0.860src/src0 area, followed by the src00-day EMA at 0.8646.
EUR/GBP Price Action – Daily chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Comments are closed