EURGBP started July’s session on the wrong foot, extending its pullback from a one-month high of 0.8657 below its short-term simple moving averages (SMAs) and towards June’s low of 0.8517.

Selling pressures could stay present in the coming sessions given the downward trajectory in the momentum indicators, with traders likely keeping a close eye on the 0.8535-0.8517 region. The 61.8% Fibonacci retracement of the previous 0.8201-0.9249 uptrend is currently balancing downside forces around the same location. Hence, a close below that base could confirm another leg down to the 0.8480 zone.There are two descending trendlines in the neighborhood coming from October and January respectively, which could add a strong footing under the price. A violation of this threshold could bolster downside forces towards the 0.8400 round-level, while a more aggressive decline could reach the August 2022 floor of 0.8340.

On the upside, the 20-day SMA at 0.8570 could first block any recovery attempts ahead of the constraining zone around 0.8615. If the 50-day SMA at 0.8635 gives way too, the bullish wave might expand towards the upper boundary of the bearish channel at 0.8692.

In a nutshell, EURGBP has probably started a new bearish breakdown to resume its downtrend from February’s highs. A decisive close below 0.8517 could press the price towards the channel’s lower boundary at 0.8480.