- EUR/GBP holds onto downside break of weekly bullish channel, stays pressured around intraday low.
- Convergence of 200-HMA, 61.8% Fibonacci retracement challenges further downside.
- Bulls need to cross 0.8640 to retake control, sellers approach monthly low.
EUR/GBP remains depressed at around 0.8575 as sellers attack short-term key support confluence ahead of Tuesday’s European session.
The cross-currency pair’s latest losses could be linked to the downside break of a one-week-old bullish channel. Also keeping the bears hopeful is the steady RSI and the quote’s sustained trading below the 100-HMA.
However, the 200-HMA and 61.8% Fibonacci retracement of June 09-15 upside challenge the EUR/GBP pair’s immediate downside around 0.8575.
Should the sellers manage to conquer the 0.8575 support, Thursday’s bottom around 0.8510 precedes the 0.8500 threshold and the monthly low of 0.8485 to lure the bears.
Meanwhile, the 100-HMA and support line of the aforementioned channel guard short-term upside near 0.8590-95.
Following that, the stated channel’s resistance line, around 0.8635, will be decisive for the EUR/GBP buyers.
In a case where EUR/GBP rises past 0.8635, the June 15 swing low near 0.8675 can entertain the buyers ahead of directing them to the monthly peak of 0.8721.
Overall, EUR/GBP bears are in the driver’s seat but the downside appears to have a limited room.
EUR/GBP: Hourly chart
Trend: Further downside expected