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20 March 2024 | FXGT.com

EURGBP remains in a consolidation phase, trading below key moving averages.

  • EUR/GBP Bearish pressure Persists: The EUR/GBP pair’s sustained position below key daily moving averages highlights ongoing bearish momentum. Price movements have been contained within a medium-term range from £0.8575 to £0.85 over recent months. The resistance at £0.8575, emphasized by the daily exponential moving average channel, has effectively blocked any bullish reversal attempts, maintaining the overall bearish sentiment.
  • Short-Term Trading Range: Over the last two weeks, the pair has been consolidating within a short-term range between £0.8560 and £0.8530. The £0.8560 resistance has been rejected multiple times during the previous week, more recently today following the announcement of UK inflation data.
  • Bearish Trend Potential Below £0.8530: A further decline below £0.8530 could pave the way for a bearish trend continuation, eyeing the crucial £0.85 support level. This level has acted as a solid foundation for the pair over the last two years and has notably provided support in recent months, including February and March.
  • Critical continuation level Below £0.85: A downward breach of the £0.85 level could mark a critical continuation point, reinforcing the long-term downtrend and suggesting further Euro depreciation against the Pound.
  • Current Market Sentiment: While the price remains below £0.8575, bearish pressure is maintained, suggesting the sideways movement could be part of a larger continuation pattern within the long-term downtrend. Conversely, only a break above £0.8575 would signal a trend reversal and alter the medium-term bearish outlook.

EURGBP 4 Hour Chart.

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