• EUR/GBP fades bounce off one-week low, retreats from intraday high of late.
• Downbeat RSI conditions, failures to cross weekly resistance line favor sellers.
• 200-SMA guards short-term upside, bears eye November’s low.

EUR/GBP pares intraday gains above 0.8400, declining to 0.8430 heading into Tuesday’s European session.

The cross-currency pair takes a U-turn from a one-week-old descending trend line, around 0.8440 by the press time, amid a sluggish RSI line.

It should be noted, however, be noted that a downward sloping support line from December 07, near 0.8410, will challenge the short-term EUR/GBP downside. Also likely to test the pair bears around 0.8410 is the RSI line’s nearness to the oversold territory.

Should the EUR/GBP bears keep reins past 0.8410, the 0.8400 threshold and November’s low near 0.8380 will be in focus.

Alternatively, recovery moves past 0.8440, comprising the nearby resistance line, will propel the quote towards the 61.8% Fibonacci retracement level of late November to early December upside, near 0.8465.

Even so, the 200-SMA level of 0.8481 will be a tough nut to crack for the EUR/GBP bulls before directing them to the 0.8500 round figure.

EUR/GBP: Four-hour chart

Trend: Further weakness expected