Back
29 Jul 2020
EUR/GBP Price Analysis: Tuesday's drop has exposed 50-day SMA support
- EUR/GBP carved a bearish candlestick pattern on Tuesday.
- A move above 0.9140 is needed to invalidate bearish pressures.
On Tuesday, EUR/GBP fell by over 0.70% from 0.9135 to 0.9160, forming a bearish marubozu candle, which comprises of big red body and little or no wicks.
The bearish marubozu validates the buyer exhaustion signaled by the multiple rejections near 0.9140 observed in the preceding seven days.
As such, the pair risks falling to the 50-day simple moving average (SMA) support, currently at 0.9006. At press time, the pair is trading at 0.9072, representing a 0.14% gain on the day.
The outlook would turn bullish if and when the pair succeeds in establishing a strong foothold above 0.9140.
Daily chart
-637315907953179805.png)
Trend: Bearish