EURGBP moved higher on Friday after three straight sessions of losses but it was still not too far from the 7.5-year low of 0.6936 it touched on July 17. With the stochastics heading down towards 20 and RSI below 50, the near term bias is bearish. Any upside momentum being signalled from the rising RSI is weak.
The medium term indicators are all looking bearish as prices remain below the moving averages and the Ichimoku cloud. The tenkan-sen line has also failed to cross above the kijun-sen line, having come close on July 22.
To regain positive momentum, EURGBP will need to break above the 50-day moving average around 0.7133. But further gains towards the 100-day moving average around 0.7190 would be needed to reverse the current downtrend. If prices head lower, a breach below the support level of the July 17 low would increase the downward momentum.
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