- EUR/GBP’s daily chart is reporting a bearish divergence of the RSI.
- The pair could drop to the 10-day MA support before the weekend.
EUR/GBP could drop to 10-day moving average (MA) at 0.9151, as the daily chart is reporting a bearish divergence of a key indicator.
The pair clocked a higher high of 0.9250 earlier this week, but the 14-day relative strength index (RSI) remained below the July 30 high of 73.50.
Put simply, the RSI has created a lower high, contradicting the higher high on the price chart.
That bearish divergence indicates the uptrend is running out of steam and a minor correction could be in the offing.
A strong bounce from the ascending (bullish) 10-day MA of 0.9150 would revive the bullish view.
Daily chart
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Trend: Pullback likely
Pivot levels
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