Indicators are recovering, still close to oversold conditions

• EUR/GBP is attempting a recovery but technicals are supporting the downside.
• Close to oversold RSI and bearish MACD signals and overall bearish outlook.
• The pair could trade sideways in the coming sessions above 0.8400.

In Monday’s session, EUR/GBP rose slightly to 0.8430, but sellers quickly regained control, pushing the pair back to the 0.8420 level. Technical indicators remain aligned with the dominant downtrend, suggesting a further decline is likely. However, everything points to the downside that the sellers will take a break in the coming sessions and the pair could trade sideways above the 0.8400 area.

The Relative Strength Index (RSI) is near oversold territory around 37, with a flat slope indicating clear momentum. Moving Average Convergence Divergence (MACD) continues to print red bars, strengthening selling pressure. Volume has declined in recent sessions, indicating stagnant selling momentum.

Overall, while extreme oversold conditions may provide temporary support, the technical outlook remains bearish. EUR/GBP could try to test immediate support at 0.8400, followed by 0.8380 and 0.8360. On the upside, resistance is at 0.8430, followed by 0.8450 and 0.8470. In case of a consolidation, traders should watch the 0.8400-0.8450 channel for sideways moves.

EUR/GBP daily chart