- EUR/GBP attempts a recovery, but technicals support the decline.
- RSI near oversold and MACD bearish signals and overall outlook bearish.
- The pair could move sideways in the coming sessions above 0.8400.
On Monday, the EUR/GBP pair rose slightly to 0.8430, but sellers quickly regained control, pushing the pair back to the 0.8420 level. Technical indicators remain aligned with the prevailing downtrend, suggesting that the decline is likely to continue. However, all signs point to sellers taking a pause in the coming sessions, and the pair could move sideways above the 0.8400 zone.
The RSI is close to oversold territory, around 37, with a flat slope indicating a lack of clear momentum. The MACD continues to print red bars, reinforcing selling pressure. Volume has been declining over the past few sessions, indicating a stagnant selling momentum.
Overall, while extreme oversold conditions may provide some temporary support, the technical outlook remains bearish. EUR/GBP could attempt to test the immediate support at 0.8400, followed by 0.8380 and 0.8360. On the upside, resistance lies at 0.8430, followed by 0.8450 and 0.8470. In case of a consolidation, traders should watch the 0.8400-0.8450 channel for sideways moves.
EUR/GBP daily chart
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
