EURGBP has been trending lower inside a descending channel that’s been holding since November, and the pair is currently testing resistance around the 0.8679 mark. Price appears to be stalling at this area of interest, so a selloff could resume from here.

The Fibonacci retracement tool shows where sellers could be waiting to defend the downtrend. The 38.2% Fib is at 0.8703, which lines up with a former support zone that could now act as resistance. The 50% level is at 0.8721, while the 61.8% Fib is at 0.8738 close to the descending channel top and area of interest.

If any of the Fibonacci levels are able to keep gains in check, EURGBP could resume the drop to the swing low around 0.8646 or lower. On the other hand, a strong break above the 61.8% Fib and descending trend line could invalidate the bearish scenario and signal a reversal.

The 100 SMA is below the 200 SMA to indicate that the path of least resistance is to the downside or that the selloff is more likely to gain traction than to reverse. The gap between the indicators is widening to reflect strengthening bearish pressure. Price is also moving below both dynamic inflection points, so these could hold as resistance on rallies.

Stochastic is pulling up from the oversold region to show that buyers are attempting a correction, though. The oscillator has plenty of room to climb before reaching the overbought area, which means that the pullback could keep going until that happens.

RSI is also heading north to reflect a return in bullish momentum, so price could keep following suit while buyers have some control. The oscillator is still below the midpoint, though, suggesting that sellers could return once it hits resistance.

EURGBP could take cues from top-tier UK data points, including the jobs report today and the CPI release tomorrow, as these could strongly influence BOE policy expectations.