EUR/GBP outlook: downside persists ahead of boe and ECB moves
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EUR/GBP continues its downward trajectory, trading near 0.8310 in early Friday trading. The pair holds below the critical 100-day EMA, with a bearish RSI signaling potential for further downside. Support levels emerge at 0.8290, and a decisive move below this threshold could deepen losses toward 0.8230.
EUR/GBP Holds Bearish Momentum Following BoE Rate Cut
The EUR/GBP pair continues to show weakness around 0.8310 as European trading opens on Friday. The recent 25-basis point (bps) rate cut by the Bank of England (BoE), bringing the rate to 4.75%, is partially in focus. BoE Governor Andrew Bailey reiterated the need for a “gradual approach” to policy easing, which some investors view as less aggressive compared to the European Central Bank’s (ECB) stance. This could lend some near-term support to the Pound, potentially capping any significant upward movements in EUR/GBP.
Technical Analysis: 4-Hour Chart Confirms Bearish Bias
The bearish outlook for EUR/GBP is confirmed by its positioning below the 100-period EMA on the 4-hour chart. The Relative Strength Index (RSI) remains in bearish territory near 35.55, signaling a potential continuation of the downward momentum. The first downside target emerges at 0.8290, aligning with the descending trend channel’s lower boundary. A break below this level could lead to a further slide, targeting 0.8230—the March 2022 low. Should the bearish pressure persist, the psychological level of 0.8200 becomes the next critical level to monitor.
Upside Scenarios and Key Resistance Levels
In a bullish scenario, EUR/GBP would need to decisively break above the immediate resistance at 0.8355, where the upper boundary of the trend channel meets the 100-period EMA. A move above this level could open the door for a rally toward 0.8419, the November 4 high, though this would require a strong shift in sentiment and momentum.
Outlook and Key Levels to Watch
EUR/GBP remains under pressure as traders weigh the differing approaches of the BoE and ECB. With bearish technical indicators reinforcing the downtrend, the cross looks set to test lower support levels, while any upside remains capped by key resistance points.
EUR/GBP Holds Bearish Momentum Following BoE Rate Cut
The EUR/GBP pair continues to show weakness around 0.8310 as European trading opens on Friday. The recent 25-basis point (bps) rate cut by the Bank of England (BoE), bringing the rate to 4.75%, is partially in focus. BoE Governor Andrew Bailey reiterated the need for a “gradual approach” to policy easing, which some investors view as less aggressive compared to the European Central Bank’s (ECB) stance. This could lend some near-term support to the Pound, potentially capping any significant upward movements in EUR/GBP.
Technical Analysis: 4-Hour Chart Confirms Bearish Bias
The bearish outlook for EUR/GBP is confirmed by its positioning below the 100-period EMA on the 4-hour chart. The Relative Strength Index (RSI) remains in bearish territory near 35.55, signaling a potential continuation of the downward momentum. The first downside target emerges at 0.8290, aligning with the descending trend channel’s lower boundary. A break below this level could lead to a further slide, targeting 0.8230—the March 2022 low. Should the bearish pressure persist, the psychological level of 0.8200 becomes the next critical level to monitor.
Upside Scenarios and Key Resistance Levels
In a bullish scenario, EUR/GBP would need to decisively break above the immediate resistance at 0.8355, where the upper boundary of the trend channel meets the 100-period EMA. A move above this level could open the door for a rally toward 0.8419, the November 4 high, though this would require a strong shift in sentiment and momentum.
Outlook and Key Levels to Watch
EUR/GBP remains under pressure as traders weigh the differing approaches of the BoE and ECB. With bearish technical indicators reinforcing the downtrend, the cross looks set to test lower support levels, while any upside remains capped by key resistance points.