- EUR / GBP remains under pressure near the intraday low, falling for the fourth day in a row.
- The UK CPI exceeds market expectations in January.
- Staying below the 61.8% Fibonacci retracement suggests a further decline towards key support.
- The corrective pullback can gain support from an oversold RSI.
The EUR / GBP cross attacks the intraday low near the 0.8700 level at the start of the European session on Wednesday. In doing so, the cross remains under pressure around the lowest levels since May 2020 after falling for the fourth day in a row.
Also showing the vulnerability of the EUR / GBP is the weakness of the pair below the 61.8% Fibonacci retracement of the December 2019 to March 2020 rally.
However, RSI oversold conditions can put EUR / GBP sellers to the test.
While the extension of the decline to the horizontal area comprising multiple lows marked since October 2019 is imminent, around 0.8670, further weakness will point to the January 200 high near 0.8595.
On the other hand, recovery moves should break above the aforementioned Fibonacci retracement at 0.8745 before the bulls turn back to target the 0.8800 region.
In addition, the region of 0.8800 also converges the 21-day SMA. A breakout of this region will aim to challenge the monthly high around 0.8860.
EUR / GBP daily chart
EUR / GBP technical levels
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