- EUR/GBP remains pressured around 23-month low, seesaws near intraday bottom of late.
- Weekly support line can test bears before directing them to 61.8% FE.
- Horizontal area from last Monday, 200-HMA challenges buyers.
- Bearish MACD signals, failures to stay beyond 100-HMA favor sellers.
EUR/GBP fades bounce off intraday low near 0.8340 heading into Monday’s European session.
In doing so, the cross-currency pair extends Friday’s breakdown of the 100-HMA amid bearish MACD signals.
That said, the latest weakness eyes an upward sloping trend line from the last Wednesday, near 0.8338, before retesting the multi-day low marked on January 05, around 0.8335.
It’s worth noting that the quote’s weakness past 0.8335 will make it vulnerable to test the 61.8% Fibonacci Expansion (FE) of January 01-06 moves, near 0.8315. Following that, the year 2020 bottom surrounding 0.8280 will be crucial to watch.
Meanwhile, 100-DMA and one-week-old horizontal area, respectively near 0.8352 and 0.8372, restrict the quote’s short-term advances.
Even if the EUR/GBP prices rally beyond 0.8372, the 200-HMA level of 0.8375 and November’s low of 0.8380 will act as extra upside filters before activating a corrective pullback that can target the 0.8400 threshold.
EUR/GBP: Four-hour chart
Trend: Further weakness expected