Technical Analysis – EURGBP sinks to the lowest since 2022
EURGBP resumes downtrend, falls rapidly to 2½-year low
Oversold signals detected, price trades at the bottom of a channel
EURGBP plummeted to a 2½-year low of 0.8316 but held above the support line of the almost one-year-old bearish channel, fueling hopes that the bulls could still find a footing.
It is important to exercise caution as the RSI and stochastic oscillator have not yet found a bottom in the oversold zone, suggesting that downside pressures could persist for a bit longer before a potential upturn.
If sellers press the price below 0.8290-0.8300, they may face a critical test between the 0.8250 handle and the 2022 six-year low of 0.8200. Below the latter, there is no key obstacle till the 2016 resistance of 0.8115.
On the other hand, strong momentum is necessary for the bulls to overturn the current freefall and rise above July’s low of 0.8381. Closing above the 20-day simple moving average (SMA) at 0.8410 and the 50-day SMA at 0.8440 might be necessary as well to accelerate towards the 0.8500-0.8530 barrier.
Still, the short-term outlook can only turn bullish if there is a sustainable rally above the 200-day SMA and the long-term bearish channel.
Overall, although downside risks have not fully evaporated, EURGBP is trading near a significant support area, which suggests the possibility of bullish activity.Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
