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EURGBP bearishness remains below 0.7500

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EUR/GBP failed to continue the rally higher after bouncing from a 7-year low of 0.7403 to reach a high of 0.7591. Since then, the pair fell back down to come close to the 7-year low.

Daily momentum remains quite negative. RSI is in bearish territory below 50, while the tenkan-sen is capping the market and keeping the underlying bearish bias. The falling Ichimoku cloud also reinforces bearishness.

In the case of a break back above 0.7500, the downside momentum would weaken and there’s a possibility to correct back higher towards the 0.7590 high again.

As long as the market remains below the key 0.7500 level, there is more scope for further downside moves towards the 0.7300’s.

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