- EUR/GBP pares recent losses while bouncing off key Fibonacci retracement level.
- 200-HMA, previous support challenge buyers, bears eye fresh weekly low.
- Downbeat RSI, sustained break of short-term triangle keep sellers hopeful.
EUR/GBP picks up bids to 0.8590 while consolidating the biggest daily loss in a week during Friday’s Asian session. In doing so, the cross-currency pair rebounds from the 61.8% Fibonacci retracement of June 09-15 upside.
However, the quote’s clear downside break of a one-week-old ascending triangle, as well as the sustained trading below the 200-HMA, hint at the further downside.
That said, the 200-HMA level of 0.8597 guards the EUR/GBP pair’s immediate upside ahead of the aforementioned triangle’s support line, at 0.8605 by the press time.
Following that, the stated triangle’s resistance line and mid-June swing low could challenge EUR/GBP bulls around 0.8645 and 0.8675 respectively.
Meanwhile, a downside break of the 61.8% Fibonacci retracement level of 0.8575 appears to be the trigger for the pair’s fall towards the June 16 trough, close to 0.8510.
In a case where EUR/GBP bears dominate past 0.8510, the 0.8500 threshold and the monthly low of 0.8485 might gain the market’s attention.
Overall, EUR/GBP prices are likely to witness further downside pressure despite the latest rebound.
EUR/GBP: Hourly chart
Trend: Further weakness expected
