EURGBP has been trending downwards since August 2020. Although the pair has adopted a more sideways pattern in the last eight months, the short-term picture has started to deteriorate again as the price is fluctuating close to record lows.
While EURGBP is pivoting near the 20-month low of 0.8402, momentum indicators suggest an imminent bearish bias. The MACD histogram is below zero and its red signal line, and the RSI is flatlining near the 30-oversold area. Moreover, the price is currently trading below the Ichimoku cloud.
Should the selling pressure intensify and the price falls below the 0.8402 region, the immediate hurdle for the bears would be the February 2020 low of 0.8337. A drop below this support would open the way towards the 0.8300 psychological mark. If this obstacle fails as well, the pair might then seek to halt its decline at the December 2019 low of 0.8275.
Alternatively, should the negative bias fade and the price reverses upwards, buyers may target the 0.8465 level. If they manage to conquer this barricade, then the next challenge could be met at 0.8498, which has provided both resistance and support in the recent months. Overcoming this level, the next hurdle for the bulls might be 0.8533 or even higher the 0.8562 region.
Overall, the outlook for EURGBP is bearish. Should the pair manage to cross below the 0.8402 key resistance area, the negative momentum is likely to strengthen, sending the pair to test its historical lows.
