• EUR/GBP remains depressed near the lowest since May 2020.
• Overbought RSI, strong support can trigger the quote’s pullback moves.
• Seven-week-old falling resistance line guards short-term upside, 200-day SMA becomes the key hurdle.

Following its heaviest drop of 2021, EUR/GBP stays pressured near the key support while heading into Friday’s European session. In doing so, the sellers attack 61.8% Fibonacci retracement of December 2019 to March 2020 upside, as recently declining to 0.8742.

Considering the overbought RSI conditions and the key Fibonacci support, EUR/GBP is likely to bounce off a multi-day low towards regaining the 0.8800 resistance.

However, any further upside past-0.8800 will be tamed a falling trend line from December 21, currently around 0.8835. Also restricting the quote’s recovery moves is the 50% Fibonacci retracement level of 0.8890.

In a case where EUR/GBP bulls dominate past-0.8890, they need to cross the 200-day SMA level of 0.9000 to mark their strength.

Alternatively, a sustained downside below the immediate support, at 0.8745, will eye for the 0.8700 round-figure before directing the EUR/GBP bears to April 2020 bottom surrounding 0.8670.

Overall, EUR/GBP remains depressed but excessive declines seem to have recently favored the corrective pullback.

EUR/GBP DAILY CHART

Trend: Corrective pullback expected