The Euro pares gains on Thursday and dives to the 0.8700 area. (Pivot Orderbook analysis)

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• The Euro pares gains on Thursday and dives to the 0.8700 area.
• A brighter market mood has eased negative pressure on the GBP.
• EURGBP to remain consolidating between 0.8600 and 0.8800 – Barclays.

The pair currently trades last at 0.8712.

The previous day high was 0.8828 while the previous day low was 0.8716. The daily 38.2% Fib levels comes at 0.8785, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.8759, expected to provide resistance.

The Euro is trading lower on Thursday, extending its reversal from the four-week highs at 0.8820 seen on Wednesday. Failure to breach 0.8800 during the early European session has increased negative pressure, pulling the pair to session lows right above 0.8700.

The Sterling has managed to pare losses on Thursday, shrugging off the negative witnessed over the previous days on the back of the Bank of England’s negative outlook for the UK economy.

In the absence of key macroeconomic data in the UK or the Eurozone, an improved risk sentiment, with world equity markets surging after the release of US CPI data, has contributed to easing negative pressure on the Pound.

In the Eurozone, European Central Bank Governing Council member, Isabel Schnabel, has reiterated the bank’s hawkish stance, affirming that “there is no time for monetary policy pause” as inflation expectations remain broadly anchored. The impact of these comments on the EURGBP, however, has been muted.

From a wider point of view, currency analysts at Barclays Research see the pair trapped within a consolidation range: “GBP received little support from the BoE last week which yet again pushed against what they see as excessive market pricing. Accordingly, the recent 0.86-0.89 range will likely continue to define the sterling path versus the EUR in the near term.”

Technical Levels: Supports and Resistances

EURUSD currently trading at 0.8712 at the time of writing. Pair opened at 0.8821 and is trading with a change of -1.24 % .

The pair is trading above its 20 Daily moving average @ 0.8687, below its 50 Daily moving average @ 0.8723 , above its 100 Daily moving average @ 0.8605 and above its 200 Daily moving average @ 0.8516

The previous day high was 0.8828 while the previous day low was 0.8716. The daily 38.2% Fib levels comes at 0.8785, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.8759, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.8748, 0.8675, 0.8635
• Pivot resistance is noted at 0.8861, 0.8901, 0.8974

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