#EURGBP @ 0.86471 teases confirmation of a bullish chart pattern, reverses the previous day’s losses., @nehcap view: Further upside expected (Pivot Orderbook analysis)

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• EUR/GBP teases confirmation of a bullish chart pattern, reverses the previous day’s losses.
• 200-SMA adds to the upside filters, 0.8570 restricts short-term downside.
• RSI, MACD suggests further upside momentum toward the monthly high.

The pair currently trades last at 0.86471.

The previous day high was 0.8652 while the previous day low was 0.8607. The daily 38.2% Fib levels comes at 0.8625, expected to provide support. Similarly, the daily 61.8% fib level is at 0.8635, expected to provide support.

EUR/GBP picks up bids to reverse the previous day’s losses around 0.8650 during the initial European session on Wednesday.

In doing so, the cross-currency pair extends Friday’s rebound from the lowest levels since September while poking the neckline of a short-term inverse head-and-shoulders (H&S) bullish chart formation.

It’s worth observing that the upward-sloping RSI (14), not overbought, joins the bullish MACD signals to suggest a clear break of the 0.8660 hurdle.

Following that, the 200-SMA level of 0.8685 could probe the advances toward the theoretical target surrounding the monthly high near 0.8830.

On the contrary, pullback moves remain elusive unless staying beyond the latest swing low of 0.8607.

Even so, the lows marked during late October and in the last week, around 0.8570, appear a tough nut to crack for the EUR/GBP bears.

In a case where the pair remains weak past 0.8570, September’s bottom near 0.8565 may act as a buffer as sellers aim for the August 19 peak of 0.8511.

Overall, EUR/GBP is likely to remain firmer and can extend the latest recovery as the inverse H&S formation joins upbeat oscillators, namely the RSI and MACD.

Trend: Further upside expected

Technical Levels: Supports and Resistances

EURGBP currently trading at 0.8647 at the time of writing. Pair opened at 0.8643 and is trading with a change of 0.05% % .

The pair is trading below its 20 Daily moving average @ 0.8696, below its 50 Daily moving average @ 0.8724 , above its 100 Daily moving average @ 0.8622 and above its 200 Daily moving average @ 0.8537

The previous day high was 0.8652 while the previous day low was 0.8607. The daily 38.2% Fib levels comes at 0.8625, expected to provide support. Similarly, the daily 61.8% fib level is at 0.8635, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.8616, 0.8589, 0.8571
• Pivot resistance is noted at 0.8661, 0.868, 0.8707

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