EUR/GBP falls below the 20-day SMA, bears takes command

EUR/GBP bulls failed to defend the 20-day SMA, and the cross fell near 0.8555.
So far, the pair lost 0.50% since Wednesday.

The daily chart suggests the EUR/GBP has a bearish technical bias for the short term, with technical indicators suggesting that the bears have taken the lead for the short term. The Euro traded weak against most of it rivals on Wednesday, which contributed to the cross failing to consolidate above the 20-day Simple Moving Average (SMA) of 0.8580.

The daily Relative Strength Index (RSI) also exhibits a southward slope below its midline, emphasising the presence of intense selling pressure. At the same time, the Moving Average Convergence Divergence (MACD), with its red bars, highlights the strengthening bearish momentum for the EUR/GBP. Similar signals are seen in the four-hour chart, with both indicators comfortably standing in negative territory.

On the bigger time frame, the pair is below the 20,100 and 200-day Simple Moving Averages (SMAs), suggesting that the buyers are struggling to overcome the overall bearish trend and the bears are still in charge.

Support levels: 0.8560, 0.8640, 0.8495.

Resistance levels: 0.8580 (20-day SMA), 0.8600, 0.8615.