EUR/GBP Downtrend Persists; Eyes on Initial Support Under 0.8300

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The EUR/GBP pair remains under pressure around 0.8310 during early European trading on Friday. On Thursday, the Bank of England (BoE) reduced interest rates by 25 basis points to 4.75% at its November meeting. During the press conference, BoE Governor Andrew Bailey emphasized the need for a "gradual approach" to easing policy.

However, expectations that the BoE will cut rates less aggressively than the European Central Bank (ECB) might offer some support to the Pound Sterling (GBP) and limit the cross's upside in the near term.

From a technical perspective on the 4-hour chart, EUR/GBP maintains a bearish outlook as it remains below the crucial 100-period Exponential Moving Average (EMA). This downward momentum is further indicated by the Relative Strength Index (RSI), which sits below the midpoint at around 35.55, suggesting that additional downside movement remains possible.

The initial downside target is located near the lower edge of the descending trend channel at 0.8290. A break below this point could lead to a decline toward 0.8230, the low from March 4, 2022, with the next key support at the 0.8200 psychological level.

In a bullish scenario, the primary resistance level is at 0.8355, aligning with both the upper boundary of the trend channel and the 100-period EMA. A clear break above this resistance could trigger a rally toward 0.8419, the high reached on November 4.

 

 

 

 

 

 

 

 

Paraphrasing text from "FXSTREET"all rights reserved by the original author.