EUR/GBP technical analysis: Eyes 100-day MA support after drop to six-week lows

• EUR/GBP looks south with bear flag breakdown on the daily chart.  
• The 100-day MA located at 0.8922 could come into play.  

EUR/GBP will likely test the 100-day moving average (MA) support of 0.8922 in the European session, having bolstered the bearish setup on the daily with a drop to a six-week low of 0.8942 on Thursday.  

As of writing, EUR/GBP is trading at 0.8953, representing 0.12% gains on the day.  

The pair fell 0.68% on Thursday, reinforcing the bearish view put forward by the bear flag breakdown confirmed on Wednesday.  

The 5- and 10-day MAs continue to trend south and the 14-day relative strength index (RSI) is reporting bearish conditions with a below-50 print.  

All-in-all, the path of least resistance is to the downside. A close below the 100-day MA at 0.8922 would expose the next major support lined up at 0.8892 (July 25 low).  

On the higher side, a daily close above the 10-day MA at 0.9034 is needed to invalidate the bearish setup.  

Daily chart

Trend: Bearish

Technical levels