EUR/GBP Price Analysis: Struggles around 0.8400 and trips down, on risk-off mood

• The EUR/GBP remains on the defensive as sellers eye a break below 0.8346.
• The RSI in the EUR/GBP daily chart confirms the downward bias.
• A tweezers-top in the hourly chart sent the EUR/GBP sliding 60 pips.

The EUR/GBP extended its losses in the week, falling for two days in a row and challenging the 0.8345 July 28 low, which, once broken, would open the door for further losses. A risk-off impulse keeps safe-haven peers rising, as geopolitical US-China frays keep traders jittery. At the time of writing, the EUR/GBP is trading at 0.8350.

EUR/GBP Price Analysis: Technical outlook

The EUR/GBP is downward biased once the exchange rate tumbled below the daily EMAs, particularly the 200-day EMA on July 26. Since then, the cross remains range-bound in the 0.8330-0.8400 area, unable to crack any of the up/down boundaries, despite that the Relative Strength Index (RSI) is headed downwards, which might open the door for lower prices.

EUR/GBP 1-hour chart

The EUR/GBP hourly chart further confirms the higher time-frame bias. Additionally, after hitting a daily high at 0.8399, a tweezers-top candlestick chart pattern emerged, sending the pair tumbling to its daily low at 0.8339. Although the cross jumped at the lows and breached the S1 daily pivot on top, EUR/GBP buyers need to achieve a daily close above 0.8353. Failure to do so, sellers remain in charge.

Therefore, the EUR/GBP first support would be the S1 daily pivot at 0.8351. Once cleared, the next support would be the S2 pivot point at 0.8329, followed by the 0.83000 figure.

EUR/GBP Key Technical Levels