EUR/GBP Technical: Short-term relative weakness of EUR reasserts against GBP – heochaua

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<li><strong>Persistent underperformance of the EUR against GBP as the EUR/GBP cross pair reintegrated below the 200-day moving average.</strong></li>
<li><strong>The hourly RSI momentum indicator of EUR/GBP has flashed out a bearish momentum condition.</strong></li>
<li><strong>Watch the 0.8615 key short-term resistance with intermediate supports coming in at 0.8550 and 0.8500.</strong></li>
</ul>
<p>In the long term, the <a href="https://www.oanda.com/sg-en/trading/forex/">EUR/GBP</a> cross pair is still evolving within a major downtrend phase as depicted by its price actions’ oscillations within a descending channel in place since the 3 February 2023 swing high of 0.8979 (see Fig 1)</p>
<h2> <strong>The major downtrend phase has remained intact since 3 February 2023</strong></h2>
<p><a href="https://www.marketpulse.com/wp-content/uploads/2024/01/EURGBP_2024-01-09_17-26-57.png"><img loading="lazy" class="alignnone wp-image-809349 size-large" src="https://www.marketpulse.com/wp-content/uploads/2024/01/EURGBP_2024-01-09_17-26-57-1024×605.png" alt="" width="700" height="414" srcset="https://www.marketpulse.com/wp-content/uploads/2024/01/EURGBP_2024-01-09_17-26-57-1024×605.png 1024w, https://www.marketpulse.com/wp-content/uploads/2024/01/EURGBP_2024-01-09_17-26-57-300×177.png 300w, https://www.marketpulse.com/wp-content/uploads/2024/01/EURGBP_2024-01-09_17-26-57-768×454.png 768w, https://www.marketpulse.com/wp-content/uploads/2024/01/EURGBP_2024-01-09_17-26-57.png 1508w" sizes="(max-width: 700px) 100vw, 700px" /></a></p>
<p>Fig 1:  EUR/GBP medium-term trend as of 9 Jan 2024 (Source: TradingView, click to enlarge chart)</p>
<h2><strong>Short-term downside momentum has resurfaced</strong></h2>
<p><a href="https://www.marketpulse.com/wp-content/uploads/2024/01/EURGBP_2024-01-09_17-38-49.png"><img loading="lazy" class="alignnone wp-image-809351 size-large" src="https://www.marketpulse.com/wp-content/uploads/2024/01/EURGBP_2024-01-09_17-38-49-1024×605.png" alt="" width="700" height="414" srcset="https://www.marketpulse.com/wp-content/uploads/2024/01/EURGBP_2024-01-09_17-38-49-1024×605.png 1024w, https://www.marketpulse.com/wp-content/uploads/2024/01/EURGBP_2024-01-09_17-38-49-300×177.png 300w, https://www.marketpulse.com/wp-content/uploads/2024/01/EURGBP_2024-01-09_17-38-49-768×454.png 768w, https://www.marketpulse.com/wp-content/uploads/2024/01/EURGBP_2024-01-09_17-38-49.png 1508w" sizes="(max-width: 700px) 100vw, 700px" /></a></p>
<p>Fig 2:  EUR/GBP minor short-term trend as of 9 Jan 2024 (Source: TradingView, click to enlarge chart)</p>
<p>Recent price actions have staged a bearish breakdown below its 200-day moving average at the start of 2024 on 3 January.</p>
<p>On the hourly chart, the price actions have taken the form of a minor descending channel with a bearish momentum reading seen in the hourly RSI momentum indicator as it staged a bearish reaction right below its parallel resistance at the 50 level.</p>
<p>These observations suggest that the EUR/GBP is likely to be staging a potential bearish impulsive downmove sequence within its major descending channel.</p>
<p>Watch the 0.8615 key short-term pivotal resistance with the next intermediate supports coming in at 0.8550 and 0.8500 (psychological & the swing low areas of 11 July/23 August 2023) next.</p>
<p>On the other hand, a clearance above 0.8615 negates the bearish tone for a minor corrective bounce to see the next intermediate resistance coming in at 0.8650 (also the 200-day moving average).</p>