#EURGBP @ 0.84282 -imp levels: has picked bids around 0.8420, however, the bullish reversal seeks more evidence.

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• EUR/GBP has picked bids around 0.8420, however, the bullish reversal seeks more evidence.
• Gas supply cut-off to Germany due to unscheduled maintenance has soared fears of a German energy crisis.
• A fresh forecast for UK CPI at 18% has created havoc for BOE policymakers.

The pair currently trades last at 0.84282.

The previous day high was 0.8455 while the previous day low was 0.8416. The daily 38.2% Fib levels comes at 0.8431, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.844, expected to provide resistance.

The EUR/GBP pair has attempted a rebound after concluding the downside move to near 0.8412 in the Tokyo session. The shared currency bulls are defending further downside despite soaring expectations of a potential German energy crisis ahead.

Investors should be aware of the fact that Russia will halt natural gas supplies to Europe for the last three days of August to run the unscheduled maintenance under the Baltic Sea to Germany. The unexpected natural gas supply cut to Germany from Nord Stream 1 pipeline will shore up the imbalance in the energy demand-supply mechanism. Also, the arrival of the winter season in Germany will scale up the energy demand. And, more supply issues in an already vulnerable German energy market may accelerate a sell-off in the shared currency.

A supportive move in the cross also banks upon mixed German Purchasing Managers Index (PMI) data. The Manufacturing PMI landed better than expectations and the prior release at 49.8. However, the Services PMI contracted to 48.2 against the forecast of 49 and the former release of 49.9.

On the pound front, rising tensions over soaring price pressures are likely to force the market participants to dump sterling. The inflation rate in the UK zone is still at par with a four-decades high at 10.1%. Now, analysts from US Bank Citi Have come forward with fresh forecasts for British consumer price inflation that it is set to peak at 18% in early 2023. Price pressures in the UK zone are not getting contained and are creating havoc for the Bank of England (BOE) policymakers.

Technical Levels: Supports and Resistances

EURGBP currently trading at 0.8427 at the time of writing. Pair opened at 0.8426 and is trading with a change of 0.01 % .

The pair is trading above its 20 Daily moving average @ 0.8422, below its 50 Daily moving average @ 0.8493 , below its 100 Daily moving average @ 0.8474 and below its 200 Daily moving average @ 0.8437

The previous day high was 0.8455 while the previous day low was 0.8416. The daily 38.2% Fib levels comes at 0.8431, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.844, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.8409, 0.8393, 0.837
• Pivot resistance is noted at 0.8449, 0.8472, 0.8488

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