EURGPB plummeted to a fresh 20-month low earlier today, and currently is trying to pare some of the losses. However, the price is still lacking direction in the medium term and any daily close below the 0.8620 support level, would endorse the outlook for a negative tendency.
From the technical point of view, the RSI has plunged into the oversold level and the MACD oscillator is down sharply too, holding below the zero and trigger lines with stronger momentum than before. Also, the 20- and 40-simple moving averages (SMAs) in the near term, posted a bearish crossover in the preceding sessions, confirming the recent movement.
More losses could drive the pair towards the next support level of 0.8530, identified by the high on April 2017. Beneath the latter, the 0.8380 support could be another level for investors to focus on, taken from the low on May 2017.
In case the pair changes its direction to the upside, the bulls will probably jump above the previous bottom of 0.8655. A break higher, could last until the 0.8760 barrier, registered by the bottom on January 18.
To sum up, in the longer timeframe, EURGBP has been trading in a sideways channel over the last 16 months.
