EURGBP came under pressure during December, crossing below its 50- and 200-day simple moving average (SMA). Moreover, the pair has marked yet more lower lows, reinforcing its overall bearish outlook.
Short-term momentum indicators are supporting a negative bias for the pair as the RSI is found below its 50 neutral mark, while the MACD is located below zero and its red signal line.
Should the bears maintain control, initial resistance might be found at the 0.8332 level. A break below that crucial point could intensify selling pressures, paving the way towards the December 2016 low of 0.8304. A decisive move below the latter could send the price to test the February 2018 low of 0.8280.
On the flip side, if the bulls regain control, initial support might be found at the 0.8378 level, before buyers eye the 0.8402 hurdle. A break above that point could open the door towards the 0.8447 obstacle, before testing the 50-day SMA currently at 0.8463. Surpassing the latter could strengthen the pair’s positive momentum, sending the price towards the 0.8500 barrier.
In brief, the outlook for EURGBP is cautiously bearish as the price is trading well below its 50- and 200-day SMA. For sentiment to change, the bears would need to break above the 200-day SMA currently at 0.8539.
