Bears lead and breach the 0.8500 support

• EUR/GBP lost ground and fell below the 0.8500 support level.
• Bearish signals are rising, indicating a possible downtrend in the next session.
• The 0.8470 area is another barrier for the bears.

On Thursday, EUR/GBP continued its downtrend, losing 0.30% to finish at 0.8490. Technical indicators present a mixed outlook, with selling forces appearing to take command.

The Relative Strength Index (RSI) has dropped to 49, which could signal a change in momentum. Meanwhile, the Moving Average Convergence Divergence (MACD) is showing rising red bars, suggesting a growing bearish momentum. Volume patterns have been bearish with a lack of conviction among market participants.

The EUR/GBP pair faces a potential bearish trend, with selling pressure likely to persist. A consolidation below the key 0.8500 support would reinforce the bearish trend and create opportunities for further declines. However, the 0.8470 area would present another strong wall to the bears. On the other hand, buyers need to recover and consolidate the convergence between the 20- and 100-day simple moving averages (SMA) around 0.8500-0.8550. A move above this level would open the way to 0.8600.

EUR/GBP daily chart