The EUR/GBP pair has fallen to a fresh 2020 trading low, as euro currency experiences broad-based weakness and the British pound firms over positive growth data.
EUR/GBP technical analysis shows that the pair is vulnerable to further heavy losses while trading below the 0.8400 level.
EUR/GBP medium-term price trend
The euro remains under heavy downside pressure against the British pound as recent negative fundamental data and bearish technical factors weigh on the pair.
Soft eurozone fundamental data this month and recent better-than-expected UK GDP data have seen the EUR/GBP resume its 2019 bear trend.
EUR/GBP analysis shows that the pair could trade much lower over the medium-term while the price holds below the 0.8400 level.
Technical analysis on the daily time frame shows that a inverted head-and-shoulders pattern has recently been invalidated.
The size of the invalidated bullish pattern indicates that the EUR/GBP pair could start to fall towards the 0.8200 support level.
Key medium-term support for the EUR/GBP pair is found at the 0.8340 and 0.8280 levels.
EUR/GBP short-term price trend
EUR/GBP technical analysis shows that the pair is heavily bearish over the short term while price trades below the 0.8488 level.
A bearish head-and-shoulders pattern has taken shape over the lower time frame, and indicates an upcoming drop of around 150 points.
The neckline of the bearish pattern is located around the 0.8388 level and remains a key focus for traders over the short term.
Any corrective moves back towards either the 0.8440 or the 0.8480 levels are likely to be used as a chance to sell the EUR/GBP pair from a more attractive entry point.
Bullish MACD price divergence is also present on the lower time frames and extends towards the 0.8440 level.
EUR/GBP technical summary
EUR/GBP analysis points to an upcoming decline towards the 0.8240 to 0.8200 area. Any move back above the 0.8400 level is likely to be used as a major selling opportunity.