#EURGBP @ 0.86150 lacks any firm intraday direction and remains confined in a narrow trading band. (Pivot Orderbook analysis)

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• EUR/GBP lacks any firm intraday direction and remains confined in a narrow trading band.
• Talks for more aggressive rate hikes by the ECB underpin the Euro and lend some support.
• Traders look to the flash German CPI and BoE Governor Bailey’s speech for some impetus.

The pair currently trades last at 0.86150.

The previous day high was 0.8676 while the previous day low was 0.8587. The daily 38.2% Fib levels comes at 0.8642, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.8621, expected to provide resistance.

The EUR/GBP cross struggles to capitalize on a two-day-old recovery move from the 0.8575-0.8570 support zone and oscillates in a narrow trading band on Tuesday. The cross, however, manages to hold above the 100-day SMA and trades around mid-0.8600s during the early European session.

The downside for the EUR/GBP cross remains cushioned in the wake of more hawkish comments by European Central Bank (ECB) policymakers recently, which point to a series of interest rate hikes ahead. In fact, ECB President Christine Lagarde said on Monday that Eurozone inflation has not peaked yet. Adding to this, Dutch central bank chief Klaas Knot noted that the risk of doing too little is clearly more pronounced than doing too much. This, along with the emergence of fresh US Dollar selling, continues to underpin the shared currency and offers support to the cross.

Adding to this, a bleak outlook for the UK economy contributes to the British Pound’s underperformance and acts as a tailwind for the EUR/GBP cross. This, however, is offset by expectations that the Bank of England (BoE) will continue to raise borrowing costs to combat stubbornly high inflation. The mixed fundamental backdrop, in turn, is holding back traders from placing aggressive directional bets and capping the upside for the EUR/GBP cross. Market participants also seem reluctant ahead of the flash German CPI figures and BoE Governor Andrew Bailey’s scheduled speech on Tuesday.

From a technical perspective, repeated failures to find bearish acceptance below the 100 DMA warrants some caution for bearish traders. That said, the EUR/GBP pair’s inability to gain any meaningful traction makes it prudent to wait for strong follow-through buying before confirming a near-term bottom and positioning for further gains.

Technical Levels: Supports and Resistances

EURGBP currently trading at 0.8644 at the time of writing. Pair opened at 0.865 and is trading with a change of -0.07 % .

The pair is trading below its 20 Daily moving average @ 0.8694, below its 50 Daily moving average @ 0.8726 , above its 100 Daily moving average @ 0.862 and above its 200 Daily moving average @ 0.8535

The previous day high was 0.8676 while the previous day low was 0.8587. The daily 38.2% Fib levels comes at 0.8642, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.8621, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.86, 0.8549, 0.8511
• Pivot resistance is noted at 0.8689, 0.8726, 0.8777

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