EUR/GBP Price Analysis: Retreats further from 4-1/2 month tops set earlier this week

• EUR/GBP continues losing ground for the third straight session on Thursday.
• The intraday bias seems tilted in favour of bears, albeit warrants some caution.

The EUR/GBP cross edged lower for the third consecutive session on Thursday and extended this week’s rejection slide from the very important 200-day SMA.

Sustained weakness below 100-hour SMA was seen as a key trigger for intraday bearish traders and fueled the ongoing corrective slide from 4-1/2 month tops.

A subsequent fall below the 23.6% Fibonacci level of the 0.8282-0.8746 recent rally now seems to have paved the way for a further near-term depreciating move.

Hence, some follow-through selling has the potential to continue dragging the cross further towards a strong horizontal support near the 0.8600 round-figure mark.

The downward momentum could further get extended towards the 38.2% Fibo., around the 0.8565 region, which coincides with a previous strong resistance break-point.

Meanwhile, technical indicators on the 1-hourly chart are already flashing slightly overbought conditions and warrant some caution before placing fresh bearish bets.

Moreover, oscillators on the daily chart – though have eased from highs – maintained their bullish bias and support prospects for the emergence of some dip-buying.

EUR/GBP 1-hourly chart

Technical levels to watch