#EURGBP @ 0.86860 Euro’s reversal from the 0.8900 area finds support at 0.8750. (Pivot Orderbook analysis)

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• Euro’s reversal from the 0.8900 area finds support at 0.8750.
• The pound appreciates as Sunak cams the market.
• EUR/GBP likely to reach 0.90 in the coming months – SocGen.

The pair currently trades last at 0.86860.

The previous day high was 0.8764 while the previous day low was 0.8662. The daily 38.2% Fib levels comes at 0.8725, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.8701, expected to provide resistance.

The euro has given away gains on Tuesday against a stronger British pound, buoyed by the market’s enthusiasm as Rishi Sunak became Prime Minister.

The pair has reversed Monday’s gains pulling back from levels neat 0.8760 to session lows at 0.8665 area where it seems to have found support to consolidate below 0.8700.

UK’s new Prime Minister Rishi Sunak’s first speech, pledging to restore economic stability has brought back confidence to the markets. Furthermore, the re-appointment of Jeremy Hunt as chancellor of the exchequer has increased hopes of a market-friendly cabinet, which has buoyed the pound across the board.

On the macroeconomic docket, the German IFO Business Climate Index showed that sentiment remains practically unchanged from the previous month. These figures have passed virtually unnoticed, as the focus is set on the outcome of the ECB’s monetary policy meeting, due next Thursday.

In a bigger picture, Kit Juckes, Chief Global FX Strategist at Société Générale, sees the pair advancing toward 0.90: “With the economy surely already in recession and set to suffer from possibly even tighter fiscal policy, sterling is unlikely to enjoy much more of a relief bounce and over time, EUR/GBP is likely to meander slowly up to 0.90 or so.”

Technical Levels: Supports and Resistances

EURGBP currently trading at 0.8688 at the time of writing. Pair opened at 0.8754 and is trading with a change of -0.75 % .

The pair is trading below its 20 Daily moving average @ 0.8755, above its 50 Daily moving average @ 0.8677 , above its 100 Daily moving average @ 0.8592 and above its 200 Daily moving average @ 0.8496

The previous day high was 0.8764 while the previous day low was 0.8662. The daily 38.2% Fib levels comes at 0.8725, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.8701, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.8689, 0.8625, 0.8587
• Pivot resistance is noted at 0.8791, 0.8829, 0.8893

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