#EURGBP @ 0.87901 holds lower ground at monthly bottom, extends pullback from 50-DMA., @nehcap view: Further downside expected (Pivot Orderbook analysis)

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• EUR/GBP holds lower ground at monthly bottom, extends pullback from 50-DMA.
• Lower-high formation keeps sellers hopeful amid bearish MACD signals.
• 2.5-month-old ascending support line, 100-DMA lures bears during further downside.
• Bulls need validation from three-week-long falling resistance line.

The pair currently trades last at 0.87901.

The previous day high was 0.8836 while the previous day low was 0.879. The daily 38.2% Fib levels comes at 0.8807, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.8818, expected to provide resistance.

EUR/GBP remains depressed around 0.8790, refreshing the monthly low, as traders brace for Tuesday’s European session. In doing so, the cross-currency pair extends the previous day’s pullback from the 50-DMA hurdle amid bearish MACD signals.

Also keeping the EUR/GBP sellers hopeful is the pair’s lower high formation, as portrayed by a three-week-old descending resistance line surrounding 0.8850 by the press time.

That said, the pair sellers appear well-set to drop towards an upward-sloping support line from December 19, 2022, close to 0.8760. However, the pair’s further downside is likely to be limited by the 100-DMA support level near 0.8750.

In a case where the cross-currency pair remains weak past 0.8750, the lows marked in January 2023 and late December 2022, respectively near 0.8720 and 0.8690, could act as additional downside filters.

Meanwhile, EUR/GBP recovery remains elusive unless the quote stays below the 50-DMA hurdle of 0.8831.

Even if the quote rises past 0.8831, the aforementioned three-week-old resistance line could challenge the pair buyers near 0.8850.

Following that, the mid-February swing high surrounding 0.8930 appears the last defense of the EUR/GBP bears.

Trend: Further downside expected

Technical Levels: Supports and Resistances

EURGBP currently trading at 0.879 at the time of writing. Pair opened at 0.8798 and is trading with a change of -0.09% % .

The pair is trading below its 20 Daily moving average @ 0.8862, below its 50 Daily moving average @ 0.883 , above its 100 Daily moving average @ 0.8752 and above its 200 Daily moving average @ 0.8662

The previous day high was 0.8836 while the previous day low was 0.879. The daily 38.2% Fib levels comes at 0.8807, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.8818, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.878, 0.8762, 0.8734
• Pivot resistance is noted at 0.8826, 0.8854, 0.8872

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