#EURGBP @ 0.88441 grinds near weekly high, up for the fourth consecutive day., @nehcap view: Further upside expected (Pivot Orderbook analysis)

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• EUR/GBP grinds near weekly high, up for the fourth consecutive day.
• Clear rebound from 50% Fibonacci retracement, upside break of 100-SMA favor bulls.
• One-week-old resistance line restricts immediate upside ahead of monthly top.

The pair currently trades last at 0.88441.

The previous day high was 0.8847 while the previous day low was 0.8767. The daily 38.2% Fib levels comes at 0.8817, expected to provide support. Similarly, the daily 61.8% fib level is at 0.8798, expected to provide support.

EUR/GBP picks up bids to 0.8845 as bulls poke intraday high, as well as the weekly top, heading into Wednesday’s European session. In doing so, the cross-currency pair rises for the fourth consecutive day after reversing from the 50% Fibonacci retracement of its run-up from early December to January 13.

In addition to a successful rebound from the key Fibonacci retracement level of 0.8722, the EUR/GBP pair’s ability to cross the 100-SMA hurdle, as well as the bullish MACD signals, favor the bulls.

It should be noted, however, that a downward-sloping resistance line from January 13, close to 0.8860 at the latest, guards the quote’s immediate upside.

That said, the quote’s run-up beyond 0.8860 could enable the EUR/GBP bulls to refresh the monthly high, currently around 0.8900. In that case, the 61.8% Fibonacci Expansion (FE) of its moves between December 01, 2022, and January 13, 2023, close to 0.8955, will gain the market’s attention.

Alternatively, pullback moves may initially aim for the 100-SMA level surrounding 0.8815 ahead of targeting the 0.8800 round figure.

Following that, the 50% Fibonacci retracement level of 0.8722 should lure the EUR/GBP bears.

In a case where the quote remains bearish past 0.8722, the 61.8% Fibonacci retracement level near 0.8680, also known as the “golden ratio”, will be crucial to watch.

Trend: Further upside expected

Technical Levels: Supports and Resistances

EURGBP currently trading at 0.8844 at the time of writing. Pair opened at 0.8822 and is trading with a change of 0.25% % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 0.8818, 50 SMA 0.8731, 100 SMA @ 0.8732 and 200 SMA @ 0.8616.

The previous day high was 0.8847 while the previous day low was 0.8767. The daily 38.2% Fib levels comes at 0.8817, expected to provide support. Similarly, the daily 61.8% fib level is at 0.8798, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.8777, 0.8732, 0.8697
• Pivot resistance is noted at 0.8857, 0.8892, 0.8937

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