Sellers hit the gas and take on more land

• EUR/GBP weakens further and buying pressure continues to recede.
• The RSI is moving dangerously close to the oversold threshold.
• 0.8380 presents a strong barrier against sellers.

In Friday’s session, EUR/GBP continued to decline, losing 0.15% to close at 0.8385. The bearish outlook persists as selling pressure intensifies and technical indicators signal a negative trend.

Looking at the technical perspective, the Relative Strength Index (RSI) fell to 35, going deeper into the negative zone. This sharp decline indicates that selling pressure is building. Furthermore, the MACD (Moving Average Convergence Divergence) histogram remains red and rising, also suggesting an increase in bearish momentum.

EUR/GBP daily chart

Based on the current technical picture, the EUR/GBP pair is likely to continue its downward trajectory. Support levels can be found at 0.8380, 0.8350 and 0.8330. If the pair breaks below 0.8380, it could signal a deeper decline towards 0.8350. Resistance levels can be found at 0.8420 (20-day Simple Moving Average (SMA)), 0.8430 and 0.8440. A break above 0.8440 could indicate a potential trend reversal.

Overall, technical indicators and recent price action suggest that the bearish momentum is likely to continue in the short term. As the bears aim their guns at 0.8380, a break below would mark a new yearly low, which would confirm a bearish outlook.