Downside remains favored despite recovery

• EUR/GBP stopped the bleeding on Friday and rose slightly above 0.8400.
• Technical indicators remain aligned with the prevailing bearish trend.
• Daily RSI remains near oversold terrain 

In Friday’s session, the EUR/GBP rose to 0.8420. However, upward movements seem to only be corrective and sellers take a breather after multiple sessions of losses.

The Relative Strength Index (RSI) is currently at 37 seeing a flat slope. The Moving Average Convergence Divergence (MACD) prints red bars, reinforcing the selling pressure.

Overall, technical indicators lack upside conviction. The pair could make an attempt to test the support at 0.8450, and if that gives way the next resistance is seen at 0.8500. With indicators near extreme conditions, the cross is set to side-ways trade in the next sessions above the 0.8400 area. Despite bullish traction being non-existent, the cross might get a push from fundamentals. On the technical side, the outlook is bearish with the cross shedding more than 1% in August. 

EUR/GBP daily chart