EUR/GBP: Potential for Further Decline to 0.8455 and 0.8385 if 0.8490 Support Breaks – Société Générale

EUR/GBP has seen a significant downturn after breaching the 200-Day Moving Average (DMA) last month, currently positioned at 0.8625. Analysts at Société Générale offer insights into the pair’s future prospects.

The Initial Support at 0.8490:

EUR/GBP is hovering around the low point from last August, approximately at 0.8490, which may act as an initial support level.

Positive Divergence in Daily MACD:

The daily Moving Average Convergence Divergence (MACD) indicator is showing signs of positive divergence, indicating a potential decrease in downward momentum.

Temporary Pause in the Downtrend:

There appears to be a temporary halt in the downward movement; however, a retest of the 200-DMA around 0.8625 cannot be discounted. A successful breach of this level is necessary to confirm an extended upward movement.

Potential for Further Correction:

Should the pair fail to hold above 0.8490, it could pave the way for a continuation of the correction towards the projected levels of 0.8455 and 0.8385.

Leave a Reply

Your email address will not be published. Required fields are marked *