© Dukascopy Bank SA
A long-lasting decline performed by EUR/GBP started in mid-March when the currency pair hit a one-month high of 0.8401. After that, the pair has been in the down-trend; however, the drop became more distinct early April that pushed the pair into a bearish corridor.
At the moment, the currency couple is sitting slightly below the 50-bar SMA at 0.8224. In the hours to come, the distance between the short-term SMA and EUR/GBP is not expected to change a lot as the proportion of long to short positions at the SWFX is almost 1:1. Meanwhile, technical indicators send a definite signal only for a medium-term and this signal is ‘sell'.
© Dukascopy Bank SA