- EUR/GBP fades bounce off 17-day low, nurses intraday losses of late.
- RSI conditions trigger intermediate bounces but 200-SMA, weekly resistance line challenge bulls.
EUR/GBP pares intraday losses around 0.8533, down 0.11% on a day ahead of Monday’s European session.
In doing so, the cross-currency pair fades Friday’s recovery moves, from the lowest levels since August 19, while stepping back from 200-SMA.
Even so, RSI conditions do signal another bounce to consolidate the nearly oversold momentum, which in turn signals another attempt to stay beyond the 200-SMA level of 0.8540.
However, a descending trend line from September 07, around 0.8555, will challenge the EUR/GBP bulls before directing them to the 0.8600 and the monthly peak of 0.8613.
Alternatively, 61.8% Fibonacci retracement of August 10 to September 09 upside, near 0.8510 and the 0.8500 will test the pair sellers.
In a case where EUR/GBP drops below 0.8500, July low around 0.8500 and the yearly low near 0.8450 will be eyed.
EUR/GBP: Four-hour chart
Trend: Further weakness expected
