Selling pressure is weighing in and the bears are conquering the 0.8500 area

• EUR/GBP extended losses on Friday and the 0.8500 support disappeared.
• Mixed technical indicators indicate a potential downtrend.
• The 0.83700 level remains a potential target for bears as August gains are offset.

On Friday, EUR/GBP extended Friday’s losses, falling 0.18% to trade at 0.8470. The pair continued to lose ground below the 0.8500 level and pared much of August’s gains, which propelled the pair to a high above 0.8600.

The daily Relative Strength Index (RSI) fell to 44, suggesting momentum is turning in favor of sellers. The Moving Average Convergence Divergence (MACD) is printing rising red bars, which shows bearish pressure is intensifying.

If the pair fails to hold the 0.8470 level, it could drop to 0.8370 (late July low) if selling pressure remains strong. On the other hand, a recovery above 0.85000 could bring gains to 0.8550.

EUR/GBP daily chart