- EUR/GBP consolidates recent losses inside a choppy range.
- Oversold RSI probes sustained downside break of short-term key HMAs, support lines.
- May’s low can lure bears below monthly bottom.
EUR/GBP holds lower ground near 0.8590, following its heaviest drop in two weeks the previous day.
In doing so, the cross-currency pair keeps key HMA breakdown, not to forget short-term support line break, amid oversold RSI conditions during Friday’s Asian session.
The RSI normalization could portray a corrective pullback towards the previous support lines surrounding 0.8600. However, any further upside will be tested by a convergence of 100 and 200-HMA near 0.8610.
Also acting as the upside filter is early Thursday’s low near 0.8620 and Tuesday’s top close to 0.8630.
Meanwhile, bears could re-enter below the latest swing low of 0.8586 to target the monthly bottom around 0.8565.
It’s worth noting that EUR/GBP weakness past-0.8565 will be challenged by the last month’s bottom of 0.8560 before directing bears to the mid-March lows around 0.8530.
Overall, EUR/GBP remains on the back foot and appealing for the sellers.
EUR/GBP hourly chart
Trend: Further losses expected
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