#EURGBP @ 0.87976 retreats from two-week high to print the first daily loss in three., @nehcap view: Recovery expected (Pivot Orderbook analysis)

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• EUR/GBP retreats from two-week high to print the first daily loss in three.
• 200-SMA, overbought RSI recently challenged EUR/GBP bulls.
• Clear upside break of the previous key resistance, bullish MACD signals keep buyers hopeful.

The pair currently trades last at 0.87976.

The previous day high was 0.882 while the previous day low was 0.8781. The daily 38.2% Fib levels comes at 0.8805, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.8796, expected to provide support.

EUR/GBP takes offers to renew intraday low near 0.8800 as it snaps a two-day winning streak during early Thursday. In doing so, the cross-currency pair reverses from the highest levels in a fortnight ahead of a series of key UK data scheduled for publishing around 06:00 AM GMT.

Also read: GBP/USD bulls attack 1.2500 as US inflation, FOMC Minutes signal Fed policy pivot, UK data dump eyed

That said, the quote’s latest pullback could be linked to the pair’s inability to cross the 200-SMA hurdle of 0.8810 amid the overbought RSI (14).

However, the EUR/GBP pair’s successful trading above the previous resistance line stretched from March 07, now immediate support around 0.8790, keeps the bulls hopeful. Adding strength to the upside bias are the bullish MACD signals.

Even if the pair drops below the resistance-turned-support of 0.8790, an upward-sloping support line from April 04, close to 0.8770 by the press time, can act as the last defense of the EUR/GBP buyers.

Meanwhile, EUR/GBP bulls need to provide a successful break of the 200-SMA hurdle of 0.8810 to restore the market’s confidence in them.

Following that, the late March high of 0.8865 and the six-week-old horizontal resistance of 0.8900, may challenge the pair’s upside momentum before directing buyers to the previous monthly high of 0.8925.

Overall, EUR/GBP witnesses a pullback from the short-term key hurdle but is not off the buyer’s radar.

Trend: Recovery expected

Technical Levels: Supports and Resistances

EURGBP currently trading at 0.8801 at the time of writing. Pair opened at 0.8804 and is trading with a change of -0.03% % .

The pair is trading above its 20 Daily moving average @ 0.8786, below its 50 Daily moving average @ 0.8829 , above its 100 Daily moving average @ 0.8787 and above its 200 Daily moving average @ 0.8701

The previous day high was 0.882 while the previous day low was 0.8781. The daily 38.2% Fib levels comes at 0.8805, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.8796, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.8783, 0.8763, 0.8744
• Pivot resistance is noted at 0.8822, 0.884, 0.8861

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