EUR/GBP Price Analysis: Selling pressure weighs and bears conquer the 0.8500 area

EUR/GBP extended losses on Friday and the 0.8500 support is gone.
Mixed technical indicators point towards a potential downtrend.
The 0.83700 level remains a potential target for the bears as August gains are being cleared.

Patricio Martín FXStreet

On Friday, the EUR/GBP pair is extending its losses from Friday, falling by 0.18% to trade at 0.8470. The pair lost further ground below the 0.8500 level and has cleared a great deal of August gains which had propelled the pair to a high above 0.8600.

The daily Relative Strength Index (RSI) has fallen to 44 suggesting that the momentum is turning in favor of the sellers. The Moving Average Convergence Divergence (MACD) is printing rising red bars, which shows that the bearish pressure is strengthening.

If the pair fails to hold the 0.8470 level, it could fall to 0.8370 (late July’s bottom) if the selling pressure remains strong. On the other hand, a recovery above 0.85000 could bring gains to 0.8550.

EUR/GBP daily chart

Author

Patricio Martín

FXStreet

Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.

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