EUR/GBP bearish break raises chance of further losses
EUR/GBP breaks major support, with short-term downtrend expected to continue as multi-month uptrend comes to an end.
Brexit fears doing little to dent GBP sentiment
Brexit talks have provided little reason for optimism after yet another failed round of talks between the UK and EU. With just four-months until the transitional period is over, the chance of an all-encompassing trade deal between the two sides appears less likely by the day. Nevertheless, the depressed nature of the pound means that there is likely to be long-term value, which is already being realized despite the ongoing economic worries.
EUR/GBP: technical analysis
Looking at the daily EUR/GBP chart, we can see how last week brought about a hugely notable breakdown, with price falling into a two-month low after crossing below the 0.8938 level. That brings an end to the uptrend in play over the three months from late April. With that in mind, it makes sense to watch out for an extension of this recent decline to extend this bearish reversal.
On an intraday basis, we can see a clear continuation of this downtrend after forming yet another lower high this morning. With the wider outlook having shifted in favour of the bears, the hurdles in the way of this short-term trend are fewer. With that in mind, it makes sense to watch out for further EUR/GBP weakness, with a break through the 0.8946 level required to negate the bearish outlook that is currently in play.
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