EUR/GBP Price Analysis: Monthly bullish channel, RSI conditions test bears above 0.8400

• EUR/GBP prints three-day downtrend inside a bullish channel.
• Failure to stay beyond 200-SMA, bearish MACD favor sellers.
• Nearly oversold RSI line challenges further downside, 0.8410 is the key support.

EUR/GBP holds lower grounds near the intraday low bottom surrounding 0.8420 amid the early Wednesday morning in Europe. In doing so, the cross-currency pair drops for the third consecutive day as bears poke a one-week low.

It’s worth observing that the EUR/GBP pair’s failure to stay beyond the 200-SMA joins the bearish MACD signals to keep sellers hopeful.

However, the RSI (14) approaches the oversold territory, suggesting that the bears are running out of steam. Also likely to challenge the quote’s further downside is the support line of a one-month-old ascending trend channel, at 0.8410 by the press time.

In a case where EUR/GBP prices remain weak past 0.8410, the odds of witnessing a gradual south-run towards the monthly low near 0.8340 can’t be ruled out.

On the flip side, the 200-SMA level near 0.8445 guards the quote’s immediate upside ahead of the 0.8500 threshold. Following, that, the upper line of the stated channel, near 0.8520, could lure the pair buyers.

If the EUR/GBP bulls keep reins past 0.8520, the late July swing high of 0.8585 will be in focus.

EUR/GBP: Four-hour chart

Trend: Limited downside expected