#EURGBP @ 0.87876 takes the bids to refresh intraday low after snapping two-day downtrend., @nehcap view: Corrective bounce expected (Pivot Orderbook analysis)

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• EUR/GBP takes the bids to refresh intraday low after snapping two-day downtrend.
• Convergence of 200-EMA, immediate descending trend line guards recovery moves.
• 50% Fibonacci retracement appears the key support for bears to watch.

The pair currently trades last at 0.87876.

The previous day high was 0.8815 while the previous day low was 0.8773. The daily 38.2% Fib levels comes at 0.8789, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.8799, expected to provide resistance.

EUR/GBP bulls struggle to retake control as the cross-currency pair renews intraday high near 0.8785 heading into Friday’s European session.

In doing so, the quote jostles with the 200-bar Exponential Moving Average (EMA) and a downward-sloping resistance line from Wednesday, close to the 0.8785-90 hurdle.

It’s worth noting that the receding bearish bias of the MACD and the RSI (14) attempt to regain the 50 level keeps the EUR/GBP buyers hopeful.

Also luring the EUR/GBP bulls could be the cross-currency pair’s bounce off the 50% Fibonacci retracement level of December 01, 2022, to January 13, 2023 upside, close to 0.8720.

Hence, the quote’s one more attempt to break the two-week-old resistance line, around 0.8840 by the press time, can’t be ruled out. Following that, a run-up to the monthly peak of 0.8897 becomes imminent.

Meanwhile, the EUR/GBP pair’s fresh weakness remains unimportant till it stays beyond the 50% Fibonacci retracement level of 0.8722.

In a case where EUR/GBP remains bearish past 0.8720, the 61.8% Fibonacci retracement level, also known as the golden ratio, could act as the last defense of the buyers around 0.8680.

Overall, EUR/GBP is likely to witness further recovery but the bulls are far from retaking control.

Trend: Corrective bounce expected

Technical Levels: Supports and Resistances

EURGBP currently trading at 0.8783 at the time of writing. Pair opened at 0.8774 and is trading with a change of 0.10% % .

The pair is trading below its 20 Daily moving average @ 0.8814, above its 50 Daily moving average @ 0.8733 , above its 100 Daily moving average @ 0.8734 and above its 200 Daily moving average @ 0.862

The previous day high was 0.8815 while the previous day low was 0.8773. The daily 38.2% Fib levels comes at 0.8789, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.8799, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.876, 0.8746, 0.8718
• Pivot resistance is noted at 0.8801, 0.8829, 0.8843

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