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EURGBP fails to extend negative structure
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20- and 200-SMAs post death cross
EURGBP is stubbornly fighting the nearby 0.8555 support level for the fifth consecutive trading day, after the strong sell-off from the 0.8765 resistance. The pair is holding well below the penetrated uptrend line and the 20- and the 200-day simple moving averages (SMAs) are ready for a death cross.
The technical picture suggests a neutral-to-bearish bias at the moment as the MACD remains negatively charged below its trigger line, while the RSI is currently flattening near the 30 level.
If the market retreats further and crosses beneath the immediate level of 0.8555, then the price could meet the 0.8523 barrier ahead of the 0.8490 bottom.
In the positive scenario where the price moves higher, the 0.8610 mark could be the next target before challenging the 0.8650 resistance and the bearish cross of the SMAs around 0.8670. A jump above these levels may switch the outlook to positive, hitting the uptrend line again at 0.8710.
As regards the very short-term outlook, EURGBP is maintaining a neutral trajectory. A move below 0.8555 could confirm the recent bearish structure.
