EURGBP hits a new multi-month low, but bears may pause due to oversold conditions.

EURGBP hit a new multi-month low on Friday, reaching its lowest level since early August 2022. It is on track for its biggest weekly loss since early January, following a gap lower at the start of the week due to growing political uncertainty in France.

Bears broke through the psychological 0.8400 support and are now targeting 0.8339 (the low from August 2, 2022). However, oversold daily studies suggest that consolidation or a limited correction may occur first.

Any upticks are expected to be capped below the falling 10DMA (0.8468) to maintain the larger bearish trend.

Only a stronger bounce that fills this week’s gap would put bears on hold and allow for a more substantial correction.

Res: 0.8423; 0.8450; 0.8468; 0.8492
Sup: 0.8397; 0.8339; 0.8276; 0.8211