#EURGBP @ 0.86183 extends previous week’s rebound from yearly low amid oversold RSI., @nehcap view: Limited recovery expected (Pivot Orderbook analysis)

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• EUR/GBP extends previous week’s rebound from yearly low amid oversold RSI.
• Support-turned-resistance line, bearish MACD signals challenge pair buyers.
• 11-month-old horizontal support area appears a tough nut to crack for bears.

The pair currently trades last at 0.86183.

The previous day high was 0.8605 while the previous day low was 0.8578. The daily 38.2% Fib levels comes at 0.8595, expected to provide support. Similarly, the daily 61.8% fib level is at 0.8589, expected to provide support.

EUR/GBP picks up bids to stretch the previous week’s recovery from the lowest levels in 2023 heading into Monday’s European session. In doing so, the cross-currency pair justifies the oversold RSI (14) line to print the two-day rebound.

However, the previous support line from March 15, around 0.8640 by the press time, as well as the bearish MACD signals, challenge the EUR/GBP pair buyers.

Even if the quote crosses the 0.8640 hurdle, the 61.8% Fibonacci retracement of its August-September 2022 upside, near 0.8690, quickly followed by the 0.8700 round figure, can challenge the EUR/GBP bulls.

It’s worth noting that the 200-DMA level surrounding 0.8755 acts as the last defense of the EUR/GBP bears, a break of which could convince pair buyers to aim for the previous monthly high of 0.8834.

On the flip side, EUR/GBP sellers need validation from the 0.8600 round to return to the table.

Even so, a horizontal area comprising multiple levels marked since July 2022, close to 0.8550-40 by the press time, appears a tough nut to crack for the pair bears before approaching the late 2022 trough of around 0.8340.

Overall, EUR/GBP is likely to pare the latest monthly loss but the room towards the north appears limited.

Trend: Limited recovery expected

Technical Levels: Supports and Resistances

EURGBP currently trading at 0.8612 at the time of writing. Pair opened at 0.8601 and is trading with a change of 0.13% % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.8676, 50 SMA 0.8751, 100 SMA @ 0.8792 and 200 SMA @ 0.8755.

The previous day high was 0.8605 while the previous day low was 0.8578. The daily 38.2% Fib levels comes at 0.8595, expected to provide support. Similarly, the daily 61.8% fib level is at 0.8589, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.8585, 0.8568, 0.8558
• Pivot resistance is noted at 0.8611, 0.8622, 0.8638

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