EUR/GBP edged higher on Friday, marking its second consecutive day of gains as traders covered short positions following a midweek sell-off. Despite this short-term rebound, the cross remains on track for a fourth straight weekly loss, trading around 0.8501 at the time of writing [1]. The pair recently broke below a multi-month support level at 0.8600 on July 1, which pushed it to a one-year low, highlighting persistent downside pressure [1].
From a technical standpoint, EUR/GBP is trading around 0.8504 and remains below its 50-day, 100-day, and 200-day Simple Moving Averages (SMAs), which are clustered between 0.8617 and 0.8688. The Relative Strength Index (RSI) is trending below 33, just above the oversold threshold of 30, while the Average Directional Index (ADX) at 31 indicates a strengthening downtrend [1].
Immediate resistance levels are identified at 0.8550 and 0.8600, with the 50-day SMA at 0.8617 and the 100-day SMA at 0.8645 potentially limiting any recovery attempts. The 200-day SMA at 0.8688 is seen as a stronger barrier. On the downside, the next notable support is at 0.8450, and a sustained break below this level could lead to an extension of the current bearish move [1].
In terms of broader currency performance, the Euro was the strongest against the Australian Dollar today, while EUR/GBP saw a -0.11% change, indicating continued relative weakness of the Euro against the Pound Sterling [1].
CONCLUSION
EUR/GBP remains under significant technical pressure despite a short-term rebound, with key resistance levels likely to cap any recovery. The overall market sentiment is bearish, and a break below 0.8450 could trigger further declines. Traders are advised to monitor support and resistance levels closely for potential shifts in momentum.