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EUR/GBP takes bids to refresh intraday lows after snapping two-day downtrend.
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Convergence of 200-EMA, immediate descending trend line guards recovery moves.
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A 50% Fibonacci retracement appears to be key support for a bearish view.
EUR/GBP bulls struggle to retake control as the cross-currency pair renews intraday high near 0.8785 heading into Friday’s European session.
In doing so, the quote jostles with the 200-bar Exponential Moving Average (EMA) and a downward-sloping resistance line from Wednesday, close to the 0.8785-90 hurdle.
It is worth noting that MACD’s reduced bearish bias and RSI (14) attempts to recover the 50 level keep EUR/GBP buyers optimistic.
Also luring EUR/GBP bulls could be the cross-currency pair’s bounce above the December 01, 2022 to January 13, 2023 50% Fibonacci retracement level, around 0.8720.
Hence, the quote’s one more attempt to break the two-week-old resistance line, around 0.8840 by the press time, can’t be ruled out. Following that, a run-up to the monthly peak of 0.8897 becomes imminent.
Meanwhile, the EUR/GBP pair’s fresh weakness remains unimportant till it stays beyond the 50% Fibonacci retracement level of 0.8722.
In a case where EUR/GBP remains bearish past 0.8720, the 61.8% Fibonacci retracement level, also known as the golden ratio, could act as the last defense of the buyers around 0.8680.
Overall, EUR/GBP is likely to witness further recovery but the bulls are far from retaking control.
EUR/GBP: Four-hour chart
Trend: Corrective bounce expected
ADDITIONAL IMPORTANT LEVELS
