The technical outlook favors the downside as selling pressure builds

• EUR/GBP weakens further as buying pressure continues to recede.
• Recent price action and technical indicators suggest another downside is on the table.
• 0.8380 presents a strong barrier against sellers.

In Thursday’s session, EUR/GBP fell slightly by 0.20% below 0.8400. Looking at the technicals, the overall trend remains bearish as selling pressure intensifies, the cross needs to hold the 0.8380 line to avoid further losses.

The Relative Strength Index (RSI) is currently at 37 and is sharply falling into negative territory, indicating that selling pressure is building. Moreover, the Moving Average Convergence Divergence (MACD) also suggests that the selling pressure is increasing as the histogram is red and rising.

EUR/GBP daily chart

Based on the current technical picture, EUR/GBP is likely to continue trading lower and support levels can be found at 0.8380, 0.8350 and 0.8330. Resistance levels can be found at 0.8430 (20-day SMA), 0.8450 and 0.8500. 0.8380 is a strong support which, if breached, would mark a 2022 low and confirm a negative outlook for the cross.