#EURGBP @ 0.87146 The euro bounces up at 0.8675 lows and returns above 0.8700. (Pivot Orderbook analysis)

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• The euro bounces up at 0.8675 lows and returns above 0.8700.
• The pound loses steam after having rallied following Truss’s resignation.
• EUR/GBP remains neutral while below 0.8750.

The pair currently trades last at 0.87146.

The previous day high was 0.873 while the previous day low was 0.8681. The daily 38.2% Fib levels comes at 0.8711, expected to provide support. Similarly, the daily 61.8% fib level is at 0.87, expected to provide support.

The euro is paring losses with the British pound retreating from session highs as the dust from UK PM Liz Truss’s resignation settles. The pair found support at 0.8675 to reach 0.8715 at the moment of writing.

The market welcomed the announcement of Prime Minister Liz Truss’s resignation earlier today, which sent the pound surging against its main peers and pushed world stocks to session highs.

Sterling’s rally, however, has been short-lived. The ongoing political uncertainty in the UK, with a Tory leadership election scheduled for next week, is keeping GBP bulls in check.

Furthermore, the market has scaled down hopes of an aggressive BoE rate hike at November’s MPC meeting. BoE member Broadbent affirmed on Thursday that the bank will respond to Britain’s tax and spending policies, but has not given any further information about the next monetary policy decision.

From a longer-term perspective, the pair remains trading sideways within recent ranges. On the upside, the pair should extend beyond 0.8750, where the 100 and 200-period SMA on the four-hour chart meet, before aiming for the October 12 high at 0.8865.

On the downside, immediate support lies at 0.8675 (October 19 low). Below here, the next potential targets could be at 0.8565 (September 6 low) and 0.8390/00 (August 8, 17, and 24 lows).

Technical Levels: Supports and Resistances

EURGBP currently trading at 0.8717 at the time of writing. Pair opened at 0.8711 and is trading with a change of 0.07 % .

The pair is trading below its 20 Daily moving average @ 0.8778, above its 50 Daily moving average @ 0.866 , above its 100 Daily moving average @ 0.8586 and above its 200 Daily moving average @ 0.849

The previous day high was 0.873 while the previous day low was 0.8681. The daily 38.2% Fib levels comes at 0.8711, expected to provide support. Similarly, the daily 61.8% fib level is at 0.87, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.8685, 0.8659, 0.8636
• Pivot resistance is noted at 0.8734, 0.8756, 0.8783

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