EUR/GBP Price Analysis: Confirms a bearish break below descending triangle

The EUR/GBP cross extended its recent sharp retracement slide from the 0.9500 mark, or 11-year tops, and remained under some selling pressure for the fourth consecutive session on Friday.

The downfall, also marking the sixth day of a negative move in the previous seven, dragged the cross below the key 0.90 psychological mark to two-week lows during the mid-European session.

With the latest leg down, the cross now seems to have confirmed a bearish break below a descending triangular formation on hourly charts and remains vulnerable to extend the bearish trend.

The horizontal support of the mentioned triangle coincided with 100-period SMA on the 4-hourly chart, which further reinforces the bearish break and supports prospects for a further depreciating move.

Meanwhile, oscillators on hourly charts have been gaining negative momentum but have still managed to hold in the bullish territory on the daily chart, warranting some caution for bearish traders.

However, any attempted bounce back above the 0.90 mark might still be seen as an opportunity to initiate some fresh bearish positions for an eventual slide towards testing sub-0.8800 levels.

EUR/GBP 4-hourly chart

Technical levels to watch