Selling pressure resumes and buyers break out of the 20-day SMA

• The negative outlook remains, RSI and MACD suggest bearish momentum.
• Multiple rejections from the 20-day SMA suggest that buyer traction is too weak.
• A break from the aforementioned media would improve the outlook.

In Friday’s session, EUR/GBP fell slightly by 0.15% to 0.8435, showing a negative technical outlook. Bears continue to lead the pair lower, reinforcing the overall bearish trend as buyers continue to struggle to conquer the 20-day simple moving average.

The Relative Strength Index (RSI) is currently at 44, in negative territory, with a slight downward slope, indicating weakening buying momentum. The MACD (Moving Average Convergence Divergence) histogram displays falling red bars, indicating a decrease in selling pressure. This mixed outlook suggests that selling forces are steady while buying forces are losing momentum.

EUR/GBP has been consolidating in a tight range over the past few trading sessions, hovering between 0.8425 and 0.8450. This consolidation indicates a lack of clear directional bias in the near term. If the pair manages to break below the immediate support level of 0.8425, it could target 0.8410 and 0.8400. Conversely, a break above 0.8450 (20-day SMA) could further open upside potential above 0.8470.

EUR/GBP daily chart