#EURGBP @ 0.86995 retreats from intraday high, reverses the previous day’s bounce off yearly low., @nehcap view: Limited downside expected (Pivot Orderbook analysis)

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• EUR/GBP retreats from intraday high, reverses the previous day’s bounce off yearly low.
• 61.8% Fibonacci retracement joins nearly oversold RSI conditions to prod sellers.
• Four-month-old previous support line, 200-DMA restrict buyer’s entry amid hawkish BoE bias.

The pair currently trades last at 0.86995.

The previous day high was 0.8701 while the previous day low was 0.8671. The daily 38.2% Fib levels comes at 0.869, expected to provide support. Similarly, the daily 61.8% fib level is at 0.8682, expected to provide support.

EUR/GBP struggles to defend the previous day’s rebound from the Year-To-Date (YTD) low as it flirts with the 0.8700 round figure on the Bank of England (BoE) Interest Rate Decision day. That said, today’s quarterly release of the BoE Monetary Policy Report makes it the “Super Thursday”.

Also read: Bank of England Preview: Bailey to break Pound’s rally with reluctance to raise rates further

The pre-BoE anxiety prods the EUR/GBP pair’s rebound from the 61.8% Fibonacci retracement of August-September 2022 upside, also known as the golden Fibonacci ratio, amid the nearly oversold RSI (14) conditions.

However, the quote’s sustained downside break of the four-month-old horizontal trend line and the 200-DMA, respectively near 0.8715 and 0.8740, keeps the EUR/GBP bears hopeful.

On the other hand, a daily closing below the 61.8% Fibonacci retracement level of around 0.8685 could witness multiple supports around the 0.8650-45 zone.

In a case where the EUR/GBP sellers remain in the driver’s seat past 0.8645, the 0.8600 round figure and the late 2022 low of around 0.8550 may lure the pair bears.

Overall, EUR/GBP remains on the bear’s radar despite the latest corrective bounce. However, the BoE is a surprise factor to closely watch.

Trend: Limited downside expected

Technical Levels: Supports and Resistances

EURGBP currently trading at 0.87 at the time of writing. Pair opened at 0.8699 and is trading with a change of 0.01% % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.8797, 50 SMA 0.8804, 100 SMA @ 0.8819 and 200 SMA @ 0.8736.

The previous day high was 0.8701 while the previous day low was 0.8671. The daily 38.2% Fib levels comes at 0.869, expected to provide support. Similarly, the daily 61.8% fib level is at 0.8682, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.868, 0.866, 0.865
• Pivot resistance is noted at 0.871, 0.8721, 0.874

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