#EURGBP @ 0.88468 attracts some dip-buying and reverses an intraday slide to sub-0.8800 levels. (Pivot Orderbook analysis)

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• EUR/GBP attracts some dip-buying and reverses an intraday slide to sub-0.8800 levels.
• The GBP loses ground on headlines that the BoE bond-buying scheme will end on Friday.
• The lack of any follow-through buying warrants caution before placing fresh bullish bets.

The pair currently trades last at 0.88468.

The previous day high was 0.886 while the previous day low was 0.8725. The daily 38.2% Fib levels comes at 0.8809, expected to provide support. Similarly, the daily 61.8% fib level is at 0.8777, expected to provide support.

The EUR/GBP cross shows some resilience below the 0.8800 round-figure mark and recovers a major part of its modest intraday losses. The cross climbs to mid-0.8800s during the early European session and is currently placed just a few pips below a nearly two-week high touched this Wednesday.

The British pound fades an intraday bounce after the Bank of England downplayed speculations that it could extend the emergence bond-buying Friday’s deadline. This comes on the back of the dismal UK GDP print and turns out to be a key factor that assists the EUR/GBP cross to attract some dip-buying. The UK Office for National Statistics reported that the economy unexpectedly contracted by 0.3% in August, reinforcing the BoE’s prediction for a recession this year.

The intraday uptick, however, lacks bullish conviction and warrants some caution before positioning for an extension of the EUR/GBP pair’s recent bounce from the monthly low. Investors remain concerned about the economic headwinds stemming from a further escalation in the Russia-Ukraine conflict. This, along with the underlying strong bullish sentiment surrounding the US dollar, is acting as a headwind for the shared currency and capping the upside for the EUR/GBP cross.

Moving ahead, market participants now look forward to a scheduled speech by the European Central Bank President Christine Lagarde, which might influence the common currency. Apart from this, the action in the UK gilts market will be looked upon to grab short-term trading opportunities around the EUR/GBP cross.

Technical Levels: Supports and Resistances

EURGBP currently trading at 0.8859 at the time of writing. Pair opened at 0.8851 and is trading with a change of 0.09 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 0.8791, 50 SMA 0.8628, 100 SMA @ 0.8576 and 200 SMA @ 0.848.

The previous day high was 0.886 while the previous day low was 0.8725. The daily 38.2% Fib levels comes at 0.8809, expected to provide support. Similarly, the daily 61.8% fib level is at 0.8777, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.8764, 0.8677, 0.8629
• Pivot resistance is noted at 0.8899, 0.8947, 0.9034

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