#EURGBP @ 0.87059 returns above 0.8700 after UK’s finance minister’s dismissal (Pivot Orderbook analysis)

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The pair currently trades last at 0.87059.

The previous day high was 0.8767 while the previous day low was 0.8609. The daily 38.2% Fib levels comes at 0.8669, expected to provide support. Similarly, the daily 61.8% fib level is at 0.8707, expected to provide resistance.

The euro is picking up on Friday after the sharp declines seen over the previous two days. The pair returned above 0.8700 on the confirmation that Prime Minister, Liz Truss has dismissed the finance minister.

\The euro is capitalizing on the pound’s weakness to appreciate about 0.8% on Friday, with the cable giving away previous gains triggered by speculation about a U-turn on the UK Government’s controversial tax cuts plan.

In the absence of relevant macroeconomic data in the UK or the EU, investors have remained cautious regarding GBP longs, wary about potential volatility. Friday is the deadline set by the Bank of England to end its bond-purchasing program.

On the upside, above 0.8700, the pair should extend beyond 0.8750, where the 100 and 200-hour SMA meet, to aim towards the October 12 high at 0.8865.

On the downside, the support at 86.15 is holding bears so far. Below here, the next potential targets could be at 85.65 (September 6 low) and 83.90/00 (August 8, 17, and 24 lows).

Technical Levels: Supports and Resistances

EURGBP currently trading at 0.8704 at the time of writing. Pair opened at 0.8633 and is trading with a change of 0.82 % .

The pair is trading below its 20 Daily moving average @ 0.8791, above its 50 Daily moving average @ 0.8639 , above its 100 Daily moving average @ 0.8579 and above its 200 Daily moving average @ 0.8483

The previous day high was 0.8767 while the previous day low was 0.8609. The daily 38.2% Fib levels comes at 0.8669, expected to provide support. Similarly, the daily 61.8% fib level is at 0.8707, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.8572, 0.8512, 0.8414
• Pivot resistance is noted at 0.873, 0.8827, 0.8888

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