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The EUR/GBP cross resumed its primary downtrend last week, breaking below the 0.8425 intermediate low on Friday despite brief recovery attempts. Technical analysis indicates that the immediate bias remains tilted to the downside entering the new trading week. The next major downside projection target is identified at 0.8336, which represents the 100% Fibonacci projection of the decline from 0.8728 to 0.8453 measured from the 0.8611 corrective high.
From a market perspective, strong selling pressure continues to weigh on the euro relative to the British pound. Near-term price action suggests that any upward retracements are likely to encounter selling interest. Tracing the broader structure, technical risks will stay firmly aligned to the downside as long as the key resistance level at 0.8476 holds firm against bullish momentum.
Looking ahead, traders should monitor potential volatility around key economic releases from both the eurozone and the United Kingdom. A sustained breakdown below current support zones could accelerate selling toward multi-month lows, whereas a decisive breach above 0.8476 would be required to invalidate the immediate bearish outlook and shift momentum back to neutral.
