#EURGBP @ 0.89424 As volatility decreased on Tuesday, fell below 0.9000, which witnessed the cross jumping to a new one-and-a-half year high. (Pivot Orderbook analysis)

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• As volatility decreased on Tuesday, EUR/GBP fell below 0.9000, which witnessed the cross jumping to a new one-and-a-half year high.
• The EUR/GBP formed a “bearish harami” candle pattern, which suggests sellers are gathering momentum.
• A break below 0.8896 would open the door towards the 0.8700 region; otherwise, a re-test of the 0.9000 figure is on the cards.

The pair currently trades last at 0.89424.

The previous day high was 0.9254 while the previous day low was 0.8853. The daily 38.2% Fib levels comes at 0.9101, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.9006, expected to provide resistance.

The EUR/GBP tumbles below the 0.9000 mark for the first time in the week after hitting a weekly high at 0.9254 on Tuesday, courtesy of growing fears about the UK’s “mini-budget” presented by the new UK Chancellor of the Exchequer Kwasi Kwarteng. However, investors’ worries have eased, and at the time of writing, the EUR/GBP is trading at 0.8938, slightly above its opening price.

The EUR/GBP remains neutral to upward biased, though, after Monday’s monstrous 400-pip rally, which printed a fresh one-year and-half high at 0.9254, the pair was subject to a mean reversion move. Therefore, the EUR/GBP reversed some of its gains on Tuesday. Even though the EUR/GBP formed a “bearish harami” candle pattern, a break below the September 26 low at 0.8851 is needed to extend its losses further.

Therefore, the EUR/GBP’s first support would be the September 27 daily low at 0.8896. Once cleared, the next support would be the 0.8851 cycle low mentioned above, followed by a drop towards the September 19 daily high-turned-support at 0.8787.

Contrarily, if the EUR/GBP breaks above 0.9000, a re-test of the 0.9100 figure is on the cards, ahead of 0.9200, followed by the YTD high at 0.9254.

Technical Levels: Supports and Resistances

EURGBP currently trading at 0.8939 at the time of writing. Pair opened at 0.8991 and is trading with a change of -0.58 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 0.8707, 50 SMA 0.855, 100 SMA @ 0.8543 and 200 SMA @ 0.846.

The previous day high was 0.9254 while the previous day low was 0.8853. The daily 38.2% Fib levels comes at 0.9101, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.9006, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.8811, 0.8632, 0.841
• Pivot resistance is noted at 0.9212, 0.9434, 0.9613

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