EUR/GBP Price Analysis: Downside intact below 0.8550

• EUR/GBP prints losses on Tuesday in the European trading session.
• More downside on the break of critical support near 0.8540.
• Momentum oscillators hold onto the oversold zone with a bearish sentiment.

EUR/GBP continues to grind shallow price movement on Tuesday tracing the previous session’s lull performance.

At the time of writing, EUR/GBP is trading at 0.8545, down 0.15% for the day.

EUR/GBP daily chart

On the daily chart, the EUR/GBP cross has been trading lower since the high made on July 20 around 0.8669. The price recovered from the low made on August 10 near 0.8450.

The descending trendline from the mentioned level acts as a strong barrier for the bulls.

A sustained move below the intraday low would meet the 0.8525 horizontal support level.

In doing so, EUR/GBP bears would then make a way to reach the 20-day Simple Moving Average (SMA) at 0.8515.

The Moving Average Convergence Divergence (MACD) indicator trades in the oversold zone. Any downtick in the MACD would prompt bears to retest the low of August 16 at 0.8483.

Alternatively, if price moves higher, in that case, the first upside target emerges at the 0.8565 horizontal resistance level.

Next, the bulls would aim at the 0.8580  horizontal resistance level followed by the high made on July 22 at 0.8610.

EUR/GBP additional levels