In recent days, the EUR/GBP has consolidated in a range close to the 61.8% Fibo level of the 0.8400-0.9324 uptrend.
The technical indicators remain bearish on the daily chart, boosting the prospects of further losses. The fact that the oscillators are on the brink of oversold conditions is the only factor keeping investors from larger positions.
Recovery attempts failed over the very important 200-day SMA and this suggests short-term downward pressure, while optimism over Soft Brexit has increased.
However, traders are likely to wait for a sustainable break below the 0.8800 support before positioning themselves for a move towards 0.8730/25 and below the psychological 0.8700 mark.
On the other hand, an uptrend will encounter resistance even before the psychological 0.8900 level, where the 50% level of Fibo is.