The currency pair recovers slightly from midweek lows but remains below key moving averages, signaling persistent bearish pressure.
EUR/GBP rose to 0.8501 on Friday, marking a second day of gains as traders covered short positions after a sharp sell-off earlier in the week. Despite the rebound, the pair is set for a fourth consecutive weekly decline, reflecting ongoing downside momentum.
The cross broke below multi-month support at 0.8600 on July 1, pushing it to a one-year low. It now trades below its 50-day, 100-day, and 200-day simple moving averages, clustered between 0.8617 and 0.8688. The Relative Strength Index stands at 33.5, just above oversold levels, while the Average Directional Index at 31.0 indicates a strengthening downtrend.
Initial resistance is seen at 0.8550, followed by the 0.8600 barrier. Downside support lies at 0.8450, with a break below potentially extending the bearish move.