Indicators recover, still near oversold conditions

• EUR/GBP attempts a recovery but technicals support the downside.
• Near oversold RSI and bearish MACD signals and overall bearish outlook.
• The pair might side-ways trade in the next sessions above 0.8400.

In Monday’s session, the EUR/GBP mildly rose to 0.8430, but sellers quickly regained control, pushing the pair back to the 0.8420 level. Technical indicators remain aligned with the prevailing bearish trend, suggesting further downside is likely. However, it all points down that the sellers will take a breather in the next sessions, and the pair might side-ways trade above the 0.8400 area.

The Relative Strength Index (RSI) is hovering near the oversold territory at around 37, with a flat slope indicating no clear momentum. The Moving Average Convergence Divergence (MACD) continues to print red bars, reinforcing the selling pressure. Volume has been decreasing in recent sessions, indicating a stagnant selling momentum.

Overall, while extreme oversold conditions may provide some temporary support, the technical outlook remains bearish. The EUR/GBP could attempt to test the immediate support at 0.8400, followed by 0.8380 and 0.8360. On the upside, resistance lies at 0.8430, followed by 0.8450 and 0.8470. In case of a consolidation, traders should eye the 0.8400-0.8450 channel for side-ways movements.

EUR/GBP daily chart