The EUR/GBP cross extends the phase of decline after struggling to overcome the crucial graphical hurdle of 0.8500. The cross can extend the down move towards next projections at 0.8340 and 0.8280, Societe Generale FX strategists note.

0.8500 is set to remain a key resistance

“EUR/GBP has extended its phase of decline after struggling to overcome the crucial graphical hurdle of 0.8500 representing the lower limit of previous consolidation zone.”

“It is gradually drifting towards a multi-month descending channel band near 0.8380/0.8370 which could be a potential support zone. An initial bounce can’t be ruled out but 0.8500 could remain a key resistance.”

“Inability to defend 0.8380/0.8370 can extend the down move towards next projections at 0.8340 and 0.8280.”