EUR/GBP Risk remains towards the downside

EUR/GBP continues to slide downwards for third consecutive session this week. The Sterling is gaining strength against the major rivals due to the twist of Brexit drama that confirmed the prolonging of negotiations for triggering Article 50. Tomorrow will be released another set of macro data in the UK on GDP and in case figures show better than expected numbers, the pair would be poised to extend the downtrend.

Technically speaking the pair is well situated within bearish conditions. The price is now far below the 2017 high at 0.8706 and has crossed to downwards the very bearish 20-day SMA. In the hourly chart technical indicators are located within negative territory with no signs for recovering. Both RSI and Stochastic are displaying lack of momentum.

In case of further bearish breakout, first support is seen at 0.8497 (today’s low) and next at 0.0850 (January 3rd low). A possible rebound would happen only if the price remain located at the current area around 0.0810. This may suggest slight upward move towards the resistance at 0.8620. 

Anyway EUR/GBP will be set to challenge upon the upcoming fundamentals tomorrow, which are going to set more clear direction for the pair.