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EUR/GBP edges up but remains set for a fourth straight weekly drop

The cross is below multiple long term moving averages and RSI is flirting with oversold levels, with support eyed at 0.8450.

Reported · Written up by our desk · Major Pairs

EUR/GBP edged higher on Friday after a midweek sell-off, extending gains for a second consecutive day as traders reportedly covered short positions. The cross was around 0.8501, still tracking toward a fourth straight weekly decline, according to FXStreet.

The pair remains under persistent downside pressure after breaking below multi month support at 0.8600 on July 1, with the move pushing EUR/GBP to a one year low. On the daily chart, it trades near 0.8504 and holds below the 50 day, 100 day, and 200 day SMAs, which are clustered between 0.8617 and 0.8688.

FXStreet also pointed to momentum indicators that signal selling pressure is still dominant. The RSI sits below 33, just above the oversold threshold of 30, while ADX at 31 suggests a strengthening downtrend.

For the next trading levels, initial upside resistance is seen near 0.8550, followed by the 0.8600 barrier, while longer term SMAs at 0.8617, 0.8645, and 0.8688 could cap recoveries. On the downside, the next notable support sits at 0.8450, and a sustained break below it could extend the bearish move.

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