- EURGBP posts another lower low
- Bearish sentiment endorsed by technical oscillators
EURGBP plunged to a new 33-month low of 0.8233 earlier today, creating a lower low in the medium-term outlook and endorsing the strong negative tendency. The momentum oscillators mirror the latest bearish move with the RSI diving towards the 30 level and the MACD strengthening its bearish steam below its trigger and zero lines.
More downside pressure could send traders to the 0.8200 round number, which is the low from March 2022, while below that the inside swing high from March 2016 at 0.8130 could prove to be a turning point barrier.
In the case of a rebound from the latest trough, immediate resistance could be the 0.8260 mark ahead of the 0.8300 handle. Even higher, the 20- and 50-day simple moving averages (SMAs) at 0.8307 and 0.8330 may pause the short-term increase.
All in all, EURGBP has been experiencing an aggressive selling interest since August, and a break above the descending trend line might not be enough to switch the current outlook to positive.
