Technical Analysis:
The EUR/GBP is trading around 0.8390, sitting just above a crucial support level after a period of consolidation. Both the 50-period and 200-period Weighted Moving Averages (WMAs), positioned at 0.83942 and 0.83877 respectively, are acting as nearby resistance, signaling a bearish outlook. This suggests that unless EUR/GBP can break above these moving averages, the downward pressure may persist.
A break below 0.8390 could pave the way for further declines toward the next support at 0.8365, while any attempt at recovery may encounter resistance around 0.8394 and 0.8410.
Support: 🔻 0.8390, 0.8365
Resistance: 🔺 0.83942 (50-WMA), 0.8410
Moving Averages:
📉 EUR/GBP is positioned under the 50-WMA and 200-WMA, reinforcing a bearish sentiment. A close above these averages could signal a shift in momentum, though the sellers remain in control as long as the pair trades below these levels.
Volume:
📊 Trading volume has remained stable, suggesting consolidation as the pair nears the 0.8390 support level. A significant increase in volume on a break below could confirm additional downside movement.
Key Levels to Watch:
Support: 0.8390, 0.8365
Resistance: 0.83942 (50-WMA), 0.8410
Outlook:
🚩 The EUR/GBP is under significant pressure near its support level. A breakdown below 0.8390 could open up further downside potential, whereas holding above this level might offer a chance for a short-term recovery, though resistance near the WMAs could cap any upward moves.
Fundamental Analysis:
The EUR/GBP remains impacted by mixed economic data from the Eurozone and the UK, with investors focused on inflation and central bank policy changes. UK’s economic resilience continues to support the Pound, keeping EUR/GBP under pressure near its support levels.
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