The EURGBP slipped below the 20-day simple moving average (SMA) on Tuesday and closed slightly below the rising trend line that has been strictly supporting the market since the sharp rebound in mid-February.
Another negative close below this line could reinforce the warnings that the price weakness may persist, confirming the somewhat discouraging signal that the decline in the RSI is currently providing.
On the downside, the 50-day SMA and the lower Bollinger band, both around 0.8930, could prove to be game modifiers if they immediately refuse further drops. Otherwise, the sale could continue to the key support level of 0.8865, a break of which would ruin the positive structure of the pair for two months, moving the spotlight towards the barrier of 0.8780.
Alternatively, if the price manages to return above the trend line, the bulls could push harder to overcome the resistance around 0.9055 and head towards 0.9140. Beyond the June peak of 0.9175 and higher than the dotted descending trend line (provisional), the rally could pick up strength around 0.9290.
Looking at the six-month picture, the neutral outlook remains intact as long as the pair is trading below the high of 0.9497.
In short, the short-term bias for EURGBP is considered neutral to bearish, with immediate support expected around 0.8930.