The downside remains favored despite the recovery

• EUR/GBP stopped the bleeding on Friday and rose slightly above 0.8400.
• Technical indicators remain aligned with the prevailing bearish trend.
• Daily RSI remains near oversold territory

In Friday’s session, EUR/GBP rose to 0.8420. However, the upward moves seem to be only corrective and sellers are taking a breather after several sessions of losses.

The Relative Resistance Index (RSI) is currently at 37, observing a flat slope. Moving Average Convergence Divergence (MACD) prints red bars, strengthening selling pressure.

Technical indicators generally lack positive conviction. The pair could try to test the support at 0.8450, and if that fails, the next resistance is seen at 0.8500. With indicators close to extreme conditions, the cross is set to trade sideways in the coming sessions above the 0.8400 area. Despite bullish traction being non-existent, the cross could get a boost from fundamentals. Technically, the outlook is light, up more than 1% in August.

EUR/GBP daily chart