Sterling rallied after the UK’s core CPI jumped to 2% yoy in May.
The euro’s last rebound has once again failed to clear the supply zone near 0.8630.
Stiff selling pressure has pushed the pair below 0.8580, the origin of the latest rally. This suggests that sellers still have the upper hand in the general direction.
An oversold RSI may prompt intraday traders to take profit.
The demand zone between 0.8560 and 0.8570 at the lower range of consolidation is critical. Its breach could trigger a sell-off towards 0.8500.