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EURGBP Plummets To 7-Week Low, Strongly Negative

EURGBP is plunging to a new seven-week low, below the 0.9000 handle, continuing the selling interest from the 0.9217 resistance. The bearish picture in the very short-term is further supported by the MACD, which is falling below its trigger line. The stochastic oscillator is holding in the oversold zone and is failing to make an attempt higher.

Should prices reverse lower, immediate support could come at 0.8890 before taking the market down to 0.8865. A drop below this area would take the pair closer to the inside swing high of 0.8813, registered in May 2020.

To the upside, there is immediate resistance at 0.8942 around the red Tenkan-sen line, while above that, the next major resistance to watch is the 23.6% Fibonacci retracement level of the down leg from 0.9217 to 0.8895 at 0.8970, which coincides with the 20-period simple moving average (SMA). More gains could move the market until 0.8990.

Briefly, EURGBP has been had a strong bearish tendency in short- and medium-term timeframes. Any climb above 0.9230 could shift the outlook to neutral.

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