• EUR/GBP rebounds from 14-week low, grinds higher of late.
• Previous support line from March guards immediate upside.
• Nearly oversold RSI, 78.6% Fibonacci retracement level challenge bears.

EUR/GBP pares losses around the lowest levels in May, up 0.14% intraday near 0.8365 heading into Wednesday’s European session. With this, the cross-currency pair justifies the nearly oversold RSI (14) amid mixed fundamentals.

However, bearish MACD signals and a clear downside break of an ascending trend line from early March, at 0.8380 by the press time, challenge the EUR/GBP buyers.

Even if the pair rises past 0.8380, the 61.8% Fibonacci retracement of the March-June upside, near the 0.8400 threshold, could also question the pair’s further advances.

It’s worth noting that the 200-DMA surrounding 0.8445 acts as the last defense of the EUR/GBP bears, a break of which could give control to the buyers.

Meanwhile, the pair’s fresh weakness could aim for the latest multi-day low of 0.8340. Following that, the downside moves could aim for the 78.6% Fibonacci retracement level of 0.8310.

In a case where EUR/GBP drops below 0.8310, the 0.8300 threshold and mid-April lows near 0.8250 can entertain sellers ahead of directing them to March’s bottom close to 0.8200.

EUR/GBP: Daily chart

Trend: Limited recovery expected