EUR/GBP Price Analysis: Further downside hinges on 0.8365 break

• EUR/GBP refreshes one-week low, extending the previous day’s downside moves.
• 200-SMA, fortnight-old support line challenge pair bears of late.
• Descending trend line from Thursday, downbeat oscillators keep sellers hopeful.

EUR/GBP drops to a fresh one-week low as sellers attack the 0.8380 level heading into Monday’s European session.

In doing so, the cross-currency pair extends the previous day’s losses towards the key 0.8365 support confluence, including the 200-SMA and an ascending trend line from mid-April.

While keeping the EUR/GBP sellers hopeful are the bearish MACD signals, descending-but-not-oversold RSI line and a three-day-old downward sloping resistance line.

Hence, the odds of the pair’s break of the 0.8365 key supports are firmer at the moment, which in turn keeps sellers hopeful to witness the 0.8335 level on the chart, comprising the 61.8% Fibonacci retracement level of April 14-26.

Alternatively, a clear upside break of the immediate resistance line, at 0.8390 by the press time, will direct EUR/GBP bulls to the previous monthly peak of 0.8467.

Following that, the 0.8500 and March’s high surrounding 0.8515 will lure the pair buyers.

EUR/GBP: Four-hour chart

Trend: Further weakness expected