- EUR/GBP remains depressed near multi-week lows set last Friday.
- The set-up supports prospects for an extension of the bearish trend.
The EUR/GBP cross remained depressed through the early part of European trading session and remained well within the striking distance of multi-week lows set last Friday.
The said low, around the 0.8740 area, coincides with a confluence region comprising of 61.8% Fibonacci level of 0.8282-0.9500 upsurge and the very important 200-day SMA.
Meanwhile, technical indicators on hourly/daily charts maintained their bearish bias and support prospects for an eventual break through the mentioned confluence support.
The cross might then turn vulnerable and set to resume its recent sharp rejection slide from the key 0.9500 psychological mark, or multi-year tops set on March 19.
Bears could aim towards challenging the 0.8700 round-figure mark before eventually dragging the cross further the next support mid-0.8600s ahead of the 0.8620 region.
On the flip side, any attempted recovery move might continue to confront some fresh supply near the 0.8800 mark and remain capped near the 0.8815-20 horizontal zone.
That said, a sustained strength might prompt some near-term short-covering move and lift the cross back towards 50% Fibo. level, around the 0.8900 round-figure mark.
EUR/GBP daily chart
Technical levels to watch