EUR/GBP Price Analysis: On the back foot below 0.8530 key resistance

• EUR/GBP consolidates the biggest daily loss in two weeks.
• Weekly support break, sustained trading below nine-week-old resistance line hint at the further downside.
• 200-SMA offers immediate support, upside momentum needs validation from November’s top.

EUR/GBP retreats towards intraday low surrounding 0.8493, up 0.03% around 0.8497 heading into Friday’s European session.

The cross-currency pair dropped the most in two weeks after breaking a one-week-long ascending trend line. The bearish impulse got favored by downbeat MACD signals and the quote’s moves below a descending resistance line from October 29.

That said, 38.2% Fibonacci retracement (Fibo.) of the late September-November downturn, near 0.8487, offers immediate support to the pair ahead of the 200-SMA, around 0.8470 at the latest.

In a case where the EUR/GBP sellers conquer the 0.8470 support, a seven-week-old horizontal area close to 0.8420 will be in focus before the last month’s bottom of 0.8380.

Alternatively, a confluence of the previous support line and a medium-term resistance line, near 0.8530, becomes crucial for the pair buyers to watch for entries.

Adding to the upside filters is the 61.8% Fibo. level of 0.8552 and November’s high of 0.8595, not to forget the 0.8600 threshold.

To sum up, EUR/GBP bears keep controls until the quote prices remain below 0.8600.

EUR/GBP: Four-hour chart

Trend: Further weakness expected