EUR/GBP bears continue to exert pressure, driving to new lows

The EUR/GBP is trading at 0.8525, at the time of writing, after slipping to its lowest level since August 2023 0.8520, recording 0.23% losses.

The daily chart indicates strong selling pressure as the RSI approaches oversold territory. A technical correction could be imminent if indicators reach oversold conditions.

As of Monday, the EUR/GBP pair is down 0.23%, trading at 0.8520. The daily chart appears to be firmly in the hands of the bears, with a negative bias for the cross. The four-hour indicators point to a nearly oversold situation, indicating that bears may still be in charge but that a potential change in momentum may be approaching.

Fundamentally speaking, the pair faces significant pressure due to diverging monetary policy tones by the European Central Bank and the Bank of England.

For the rest of the week, investors will take a close look at the BoE’s decision on Thursday as well as key inflation figures from the Eurozone for January.