EUR/GBP Price Analysis: Bears tease multi-week support near 0.8570

The EUR/GBP cross-currency pair extends the previous two day’s losses on Monday’s morning Asian session. As of writing, EUR/GBP was trading at 0.8575, down 0.04% for the day.

EUR/GBP daily chart

On the daily chart, the EUR/GBP cross has been consolidating near the 0.8570 level, with multiple lows formation making it a critical level to trade. The descending trendline from the high of 0.8719 is exerting selling pressure on the pair.

If price breaks the above mentioned level, then it could intensify the downside momentum toward the 0.8555 horizontal support level, the level last in March.

Adding to that, the Relative Strength Index ( RSI) reads at 40, which signifies the underlying bearish tone in EUR/GBP. The EUR bears would be encouraged to test June 26 low at 0.8534 followed by the 0.8500 horizontal support level.

Alternatively, if price sustained above the session’s high, then it could crawl back to the 0.8610 horizontal resistance level. Next, the cross would attempt to hit the June 10 high at 0.8642. 

A move above the 0.8642 level will also coincide with the break of the bearish sloping line and making a path clear to the 0.8660 horizontal resistance level.

EUR/GBP additional level