• EUR/GBP grinds lower, consolidates recent gains around 21-month low.
• MACD teases bears, weekly falling trend line adds to the upside filters.

EUR/GBP remains depressed around 0.8420, down 0.07% heading into Friday’s London open. The cross-currency pair recovered from the lowest levels since February 2020 the previous day but witness a pullback move ahead of the key UK Retail Sales data for October.

While portraying the recent range, the 100-HMA and the 50-HMA restrict the short-term moves around 0.8440 and 0.8408 in that order.

Also acting as the resistance is a descending trend line from November 12, near 0.8450, a break of which will highlight the 0.8465-70 as the key hurlde.

In a case where the pair rises past 0.8470, its run-up to 0.8500 can’t be ruled out.

Meanwhile, a downside break of 0.8408 needs validation from the 0.8400 threshold before directing the EUR/GBP sellers towards the recently multi-month low near 0.8380.

During the quote’s weakness below 0.8380, February 2020 bottom close to 0.8280 will lure the bears.

EUR/GBP: Hourly chart

Trend: Further downside expected