EUR/GBP Price Analysis: Sellers keep reins below 0.8600 inside weekly falling triangle

• EUR/GBP portrays three-day downtrend inside an eight-day-old descending triangle.
• Bearish MACD signals keep sellers hopeful, 200-SMA offers intermediate halt.
• Recovery remains elusive below 0.8600, 61.8% golden ratio restricts immediate downside.

EUR/GBP fades bounce off 61.8% Fibonacci retracement of June 09-15 upside heading into Wednesday’s European session. That said, the quote remains pressured around 0.8580 during the three-day downtrend by the press time.

The cross-currency pair portrays a bullish chart pattern, called descending triangle, on the four-hour chart. However, bearish MACD signals and failures to rebound from the key SMA, as well as the 61.8% Fibonacci retracement (Fibo), also keep sellers hopeful.

It’s worth noting that the quote’s weakness past 61.8% Fibo. level surrounding 0.8575 could drag the quote towards the 200-SMA level near 0.8565.

Following that, the aforementioned triangle’s support line, close to 0.8540, will be in focus.

Alternatively, an upside break of the stated triangle’s resistance line, at 0.8595 by the press time, will confirm the bullish chart formation.

Following that, a run-up towards the monthly high near 0.8680 and June’s peak of 0.8721 will gain the market’s attention.

Overall, EUR/GBP remains pressured while consolidating the pair’s up-moves since mid-April.

EUR/GBP: Four-hour chart

Trend: Further weakness expected