- EUR/GBP extends previous week’s rebound from yearly low amid oversold RSI.
- Support-turned-resistance line, bearish MACD signals challenge pair buyers.
- 11-month-old horizontal support area appears a tough nut to crack for bears.
EUR/GBP picks up bids to stretch the previous week’s recovery from the lowest levels in 2023 heading into Monday’s European session. In doing so, the cross-currency pair justifies the oversold RSI (14) line to print the two-day rebound.
However, the previous support line from March 15, around 0.8640 by the press time, as well as the bearish MACD signals, challenge the EUR/GBP pair buyers.
Even if the quote crosses the 0.8640 hurdle, the 61.8% Fibonacci retracement of its August-September 2022 upside, near 0.8690, quickly followed by the 0.8700 round figure, can challenge the EUR/GBP bulls.
It’s worth noting that the 200-DMA level surrounding 0.8755 acts as the last defense of the EUR/GBP bears, a break of which could convince pair buyers to aim for the previous monthly high of 0.8834.
On the flip side, EUR/GBP sellers need validation from the 0.8600 round to return to the table.
Even so, a horizontal area comprising multiple levels marked since July 2022, close to 0.8550-40 by the press time, appears a tough nut to crack for the pair bears before approaching the late 2022 trough of around 0.8340.
Overall, EUR/GBP is likely to pare the latest monthly loss but the room towards the north appears limited.
EUR/GBP: Daily chart
Trend: Limited recovery expected
Additional important levels
|Today last price||0.8612|
|Today Daily Change||0.0011|
|Today Daily Change %||0.13%|
|Today daily open||0.8601|
|Previous Daily High||0.8605|
|Previous Daily Low||0.8578|
|Previous Weekly High||0.8695|
|Previous Weekly Low||0.8568|
|Previous Monthly High||0.8835|
|Previous Monthly Low||0.8583|
|Daily Fibonacci 38.2%||0.8595|
|Daily Fibonacci 61.8%||0.8589|
|Daily Pivot Point S1||0.8585|
|Daily Pivot Point S2||0.8568|
|Daily Pivot Point S3||0.8558|
|Daily Pivot Point R1||0.8611|
|Daily Pivot Point R2||0.8622|
|Daily Pivot Point R3||0.8638|
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