EUR/GBP Pauses After Recent Correction
The EUR/GBP pair has experienced a temporary pause in its downward trend following a correction from its September 24 low. Despite the recent pullback, the pair remains in a bearish trend, with a higher probability of further downside.
Technical Analysis:
- Short and Medium-Term Downtrend: The pair is currently in a downtrend on both short and medium-term timeframes.
- Potential Rebound: There is a possibility for a short-term rebound, but the overall trend remains bearish.
- RSI Exit from Oversold: The Relative Strength Index (RSI) has exited the oversold zone, suggesting a potential for a stronger correction.
- Breakout Levels: A break above 0.8372 could confirm a stronger rebound, while a break below 0.8317 would reconfirm the downtrend and target 0.8287.
Overall Outlook:
While a short-term correction is possible, the EUR/GBP pair is likely to continue its downward trend in the medium term. Traders should remain cautious and monitor technical indicators for potential changes in the trend.