EUR/GBP Price Analysis: Sellers lookout for more downside below 0.8550

EUR/GBP prints minute gains on Tuesday in the Asian trading session.
Probable downside if price decisively moves beyond 0.8550.
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 0.8558, up 0.04% for the day.

EUR/GBP daily chart

On the daily chart, the EUR/GBP cross has been trading lower since the high made on April 26 around 0.8719. The formation of Doji candlesticks indicates indecisiveness among traders.

A sustained move below the intraday low would meet the levels last seen in 2020, with the first downside target placed on 27 February 2020 at 0.8433.

In doing so, EUR/GBP bears would then make a way to reach the 0.8405 horizontal support level.

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 February 26 at 0.8356.

Alternatively, if price moves higher, in that case, the first upside target emerges at the 0.8490 horizontal resistance level.

Next, the bulls would aim at the 0.8510 horizontal resistance level followed by the high made on August 5 at 0.8528.