EUR/GBP Technical Analysis: Bearish sentiment is quite strong

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EUR/GBP could revisit yesterday’s low of 08762 and could break lower in Europe, as the absence of strong bounce despite the bullish divergence of the hourly chart relative strength index (RSI) indicates the bearish sentiment is quite strong. 

The 5- and 10-day moving averages (MAs) are trending south in favor of the bear and the pair also closed below 0.8617 (Jan. 25 low) yesterday, reinforcing the bearish view put forward by the MAs and lower highs and lower lows carved out over the last eight weeks. 

A close above the 10-day MA would abort the bearish view. 

Hourly chart

Trend: Bearish

 

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