EUR/GBP Price Analysis: Teases falling wedge support, nears 0.8500

• EUR/GBP falls for the fourth straight day towards 0.8500.
• The cross inches closer towards falling wedge support.  
• RSI remains bearish and calls for more downside.

EUR/GBP is extending its four-day losing streak into Wednesday, undermined by the latest uptick in the GBP/USD pair, thanks to stronger-than-expected UK inflation data.

Amid a persistent downbeat tone, the pair is looking to challenge falling wedge support at 0.8513.

Note that the price has been wavering in a falling wedge formation after peaking out around 0.8720 levels at the end of April.

A daily closing below the wedge support would validate a downside breakout, calling for more downside towards the horizontal (dashed) trendline support at 0.8497.

The 14-day Relative Strength Index (RSI) points south below the midline, allowing room for more declines.

EUR/GBP daily chart

paused its three-day losing streak, attempting a minor bounce while defending the critical short-term 21- daily moving average (DMA) support at 0.8604.

On the flip side, buyers need acceptance above 0.8550 to embark upon any meaningful recovery towards the bearish 21-daily moving average (DMA) support-turned-resistance at 0.8565.

Further north, the 0.8600 round number could be challenged by the bullish traders.

EUR/GBP additional levels to watch