• EUR/GBP fades bounce off three-week low inside bearish channel.
• Bear cross, oscillators add to the downside bias.

EUR/GBP remains on the back foot around 0.8330 while consolidating the biggest daily gains in a week around intraday low ahead of Wednesday’s European session.

The cross-currency pair bounced off 0.8310 but couldn’t cross the 50% Fibonacci retracement (Fibo.) of February 03-07 upside.

The resulting pullback moves portrayed a short-term falling channel, as well as a bear cross between the 50-SMA and 200-SMA, which in turn suggest the quote’s further weakness.

Also keeping the EUR/GBP sellers hopeful is the recently easing bullish bias of the MACD and downward sloping RSI, not oversold.

That said, the stated channel’s support line near the 0.8300 threshold becomes the seller’s imminent target ahead of the monthly low of 0.8284.

Alternatively, 50-SMA and 61.8% Fibo. will challenge the short-term rebound near 0.8360 ahead of the 200-SMA and upper line of the stated channel, close to 0.8365-70.

In a case where EUR/GBP buyers cross the 0.8370 hurdle, the latest swing high of 0.8382 and the 0.8400 round figure should return to the charts.

EUR/GBP: Four-hour chart

Trend: Further weakness expected