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Drops to near three-week lows, below mid-0.8800s

  • EUR/GBP remained depressed for the sixth straight session on Tuesday.
  • The technical set-up support prospects for an extension of the downfall.

The EUR/GBP cross extended its recent sharp pullback from multi-year tops and witnessed some follow-through selling for the sixth consecutive session.

The downtick, also marking its eighth day of a negative move in the previous nine, extended further below the 50% Fibonacci level of 0.8282-0.9500 upsurge.

This comes on the back of the recent break below a descending triangle on short-term charts and supports prospects for an extension of the bearish trajectory.

Meanwhile, technical indicators on the daily chart have just started gaining negative momentum and further add credence to the pair’s negative outlook.

Hence, a further near-term downfall, towards testing the 0.8800 mark en-route 1.8% Fibo. support near the 0.8740 region, now looks a distinct possibility.

However, oscillators on the 1-hourly chart are already flashing slightly oversold conditions and warrant some caution before placing aggressive bearish bets.

EUR/GBP 4-hourly chart

Technical levels to watch

 

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