EURGBP is trading near its weakest level since 2017, following a plunge from the 0.8385 barrier in the preceding week. The pair created a consolidation area from 0.8275 to 0.8590 since December 13 but is still moving below the short- and medium-term moving averages, confirming the long-term bearish structure from the ten-year peak of 0.9324.
From a technical viewpoint, the momentum indicators seem to be in confusion as the MACD is holding below its trigger line, which supports the bearish view as well, however, the RSI is heading slightly up in the negative zone.
Should bearish dynamics dominate, the market might revisit the 0.8275 bottom before meeting the 0.8200 handle before the 0.8135 support, taken from the inside swing high of April 2016.
A successful reversal to the upside could stall at the 0.8385 resistance and the red Tenkan sen line, ahead of the 20-day SMA currently at 0.8412. Slightly above this line, the 40-day SMA, which lies near the lower surface of the Ichimoku cloud of 0.8465 could be the next significant level. Higher still, the 23.6% Fibonacci retracement level from 0.9324 to 0.8275 at 0.8520 and the 100-day SMA at 0.8545 may halt upside movements in the short-term trading range.
Summarizing, the short-term picture continues to look predominantly neutral, with trading activity taking place near the multi-month low.
