EURGBP Declines Steeply in Short-Term; Holds in Descending Channel

Technical analysis of Forex market

EURGBP has lost significant ground over the last 4-hour session, finding resistance at the lower surface of the Ichimoku cloud. The price has been developing within a descending channel since September 15 and the RSI is confirming this negative bias as it is pointing downwards. The MACD oscillator is moving sideways near the zero level.

Immediate support would come from the 0.9020 barrier before traders move towards the 0.8990 level. Clearing these hurdles, the market could touch the 0.8864 support, taken from the low on September 3, and penetrating the channel to the downside, indicating steeper decreases.

Summarizing, EURGBP has been in a downside movement and only an advance above the 0.9130-0.9160 resistance could change this outlook to neutral. However, a jump above 0.9290 could switch the broader picture to bullish. 

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