#EURGBP @ 0.87317 dropped after failing to break above the 0.8787 area. (Pivot Orderbook analysis)

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• EUR/GBP dropped after failing to break above the 0.8787 area.
• The EUR/GBP daily chart remains upward biased, but a negative divergence is looming, having risks skewed to the downside.
• In the short term, the EUR/GBP is already downward biased and could break below the 0.8700 mark.

The pair currently trades last at 0.87317.

The previous day high was 0.8783 while the previous day low was 0.8724. The daily 38.2% Fib levels comes at 0.8747, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.8761, expected to provide resistance.

The EUR/GBP dropped from daily highs after hitting a YTD high on Monday at 0.8787. Still, renewed fears of tensions arising between Ukraine and Russia weighed on the shared currency, which is trading below its opening price by 0.41% on Wednesday. At the time of writing, the EUR/GBP is trading at 0.8719.

The EUR/GBP daily chart illustrates the cross-currency pair that, albeit tumbling from around YTD highs, the pair encountered support above the June 15 daily high at 0.8721. During the day, the EUR/GBP dived towards its daily low at 0.8711, but bids lifted the pair towards current exchange rates. EUR/GBP traders should be aware that a negative divergence is forming, with the EUR/GBP price action registering higher highs, contrary to the RSI, which printed lower lows.

Therefore, in the near term, traders could expect a correction before resuming the uptrend.

Short term, the EUR/GBP is downward biased, as depicted by the 4-hour chart. The negative divergence in this time frame sent the cross sliding below the 20-EMA, but the 50-EMA at 0.8711, was a difficult support level to hurdle. Nevertheless, with the RSI getting into negative territory and further weakness expected by the euro, a fall below the 0.8700 mark is likely.

Therefore, the EUR/GBP first support would be the 50-EMA at 0.8711, which, once cleared, could send the pair sliding towards the S1 pivot at 0.8696. A breach of the latter will expose the 100-EMA at 0.8672, followed by the last week’s low at 0.8625.

Technical Levels: Supports and Resistances

EURGBP currently trading at 0.8719 at the time of writing. Pair opened at 0.8764 and is trading with a change of -0.47 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 0.8634, 50 SMA 0.852, 100 SMA @ 0.853 and 200 SMA @ 0.8453.

The previous day high was 0.8783 while the previous day low was 0.8724. The daily 38.2% Fib levels comes at 0.8747, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.8761, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.8731, 0.8699, 0.8673
• Pivot resistance is noted at 0.879, 0.8816, 0.8848

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