For the fourth day in a row, the EUR/GBP has dropped to 0.8500.
The cross moves closer to the support of the descending wedge.
The RSI is still negative, implying additional downside.
The current increase in the GBP/USD pair, courtesy to stronger-than-expected UK inflation statistics, is weighing on the EUR/GBP, which is extending its four-day losing streak into Wednesday.
The pair is attempting to break through falling wedge support around 0.8513, despite a continued pessimistic tone.
After hitting around 0.8720 levels at the end of April, the price has been swaying in a falling wedge formation.
A daily close below the wedge support would confirm a negative breakout, implying more losses to the horizontal (dashed) trendline support at 0.8497.
The 14-day Relative Strength Index (RSI) is south of the midline, indicating that additional falls are possible.
Attempting a brief bounce while defending the important short-term 21-day moving average (DMA) support at 0.8604, the market interrupted its three-day losing streak.
Buyers, on the other hand, need acceptance over 0.8550 to begin a substantial rebound towards the bearish 21-daily moving average (DMA) support-turned-resistance level of 0.8565.
The optimistic traders could challenge the 0.8600 round figure further north./n
