EURGBP continues its descending trend and has yet to break its series of successive lower lows as negative forces linger. Moreover, the pair is trading well below the 50- and 200-day simple moving averages (SMAs), maintaining an overall bearish outlook.
Short-term momentum indicators are reflecting a negative bias as the RSI is located below its 50 neutral mark. In addition, the MACD is found below zero and its red signal line, which indicate that the negative momentum might be gaining further ground.
Should the bears maintain control, initial resistance might be found at the 0.8304 obstacle, before sellers shift their attention towards the 0.8284 hurdle. Crossing below the latter could intensify selling pressures, opening the door towards the July 2016 low at 0.8248.
On the flip side, if buyers resurface, their first target might be the region which includes the 0.8378 level and the 50-day SMA, before eyeing the October low at 0.8401. A decisive move above this point could increase positive momentum, sending the price to test the February high at 0.8477, before taking aim at the region which encapsulates the 200-day SMA currently at 0.8493 and the 0.8500 hurdle.
In brief, the overall outlook for the pair is bearish . For sentiment to change, buyers would need to break above the 200-day SMA.
