Lowest weekly close since August does not mean much for the pound

Pound is about to end the week higher against the euro, significantly away from the top.
EUR/GBP still in a bearish trend after failing to break key support.

The EUR/GBP is about to post another weekly loss and the lowest close since August. The sign from the weekly candle is not positive for the pound as it showed the close far from the lows.

The decline in EUR/GBP found support again around the 0.8850 and was followed by a sharp rebound to 0.9000 that lost momentum on Friday. The short-term outlook favors some consolidation ahead.

The 0.8850 area continues to be the key support. A break lower would clear the way to more losses. The next area to watch here stands around 0.8815/25, the convergence of the 55 and 100-week moving averages.

The bias still favors the downside despite the recovery of the euro. A firm break above 0.9060/70 would negate the bearish perspective.