- EUR/GBP defends 0.8600 despite failures to back the bulls.
- Confluence of 200-SMA, 50% Fibonacci retracement guards immediate upside.
- Bears have a bumpy road to the south, 0.8590 offers nearby support.
EUR/GBP struggles to extend the previous week’s recovery moves above 0.8600, around 0.8610 ahead of Monday’s European session.
Although bullish MACD signals back rebound from monthly low, the early May’s lows surrounding 0.8625 tests intraday buyers ahead of a 200-SMA and 50% Fibonacci retracement convergence near 0.8640.
Even if the EUR/GBP prices cross the 0.8640 hurdle, 61.8% Fibonacci retracement of the pair’s fall from late April, around 0.8660, will be another key barrier before the monthly top of 0.8700.
Should EUR/GBP fails to stay on the road to recovery, the 0.8600 round figure will precede multiple supports around the 0.8590 level to test the short-term downside.
Additionally, the monthly low near 0.8560 precedes the mid-March bottom surrounding 0.8530 and the 0.8500 threshold, not to forget the yearly low of 0.8472, offer a troubled journey to the south.
EUR/GBP four-hour chart
Trend: Further recovery expected
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