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Will the EUR/GBP Continue its Bearish Move Towards 0.8580?

June 1, 2021

  • EUR/GBP moves lower after touching weekly resistance.
  • Downward MACD confirms bearish move.
  • Traders wait on for EU’s CPI and UK’s PMI data release.

EUR/GBP has taken a pause at around 0.8590, after it dropped 0.14% intra-day, in the lead up to Tuesday’s European session. The pair continued its bearish move after yesterday’s pullback from the 100-SMA and a descending trend line from May 25th.

The MACD suggests further downward movement is likely, with sellers focusing on a horizontal area containing several previous lows at around 0.8580 which goes all the way back to May 18th.

Traders wait-on for key data releases from the EU and the UK. In the lead up to the European session, overall sentiment remains indecisive. Sellers will remain optimistic unless the quote crosses the 100-SMA level at around 0.8610. A corrective pullback from the downward trend line at 0.8605 is also a possibility.

If there were to be a downward break of the 0.8580 area, the price could slide as far as the previous month’s low at around 0.8560.  

 

EUR/GBP H4 Chart (Trend: BEARISH)

 

 

 

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