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EUR/GBP slides toward 0.8450 as sellers keep control

The pair has drawn selling for a seventh straight day, with RSI slipping to oversold readings near 25.

Reported · Written up by our desk · Major Pairs

The EUR/GBP cross is attracting sellers for the seventh straight day, pulling the rate back toward its year to date low near 0.8460 to 0.8455 at the start of a new week, according to FXStreet.

FXStreet links the underperformance in the shared currency to market worries that a spiraling France debt crisis could spill over to other high debt euro-area nations, with the next French presidential election also adding uncertainty about future fiscal policy.

Technical indicators remain bearish, with MACD in negative territory and the relative strength index slipping into oversold readings near 25, suggesting downside pressure is stretched even as sellers remain in control.

FXStreet adds that a corrective bounce may face hurdles around 0.8500, while a stronger move above 0.8540 could open the door to a short covering rally toward levels above the 0.8600 round figure.

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