• EUR/GBP retreats from intraday high during two-day rebound from 23-month low.
• 20-SMA adds strength to the short-term resistance, RSI rebound hints at further upside.
• February 2020 lows can lure bears, fortnight-old descending trend line adds to the upside filters.

EUR/GBP struggles to extend the previous day’s bounce off February 2020 levels while heading into Thursday’s European session. That said, the cross-currency pair steps back from short-term descending trend line to 0.8357, up 0.13% intraday, by the press time.

Although the 20-SMA joins a downward sloping resistance line from December 21 to restrict short-term EUR/GBP upside around 0.8360, RSI recovery from the oversold region hint at further advances.

Hence, a clear run-up beyond 0.8360 is eyed before challenging a two-week-long resistance line near the 0.8400 round figure.

It should be noted, however, that a clear upside break of 0.8400 enables EUR/GBP buyers to aim for the 100-SMA level surrounding 0.8445.

On the flip side, a two-day-old ascending support line at 0.8338 restricts immediate declines of the EUR/GBP pair ahead of directing it to the February 2020 low of 0.8282.

Overall, EUR/GBP bears keep the reins but a corrective pullback can’t be ruled out.

EUR/GBP: Four-hour chart

Trend: Further upside expected