#EURGBP @ 0.87667 is making efforts in surpassing the immediate resistance of 0.8770. (Pivot Orderbook analysis)

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• EUR/GBP is making efforts in surpassing the immediate resistance of 0.8770.
• Inflationary pressures in the UK economy have remained extremely high led by a shortage of labor.
• Fears of a recession in Eurozone are accelerating as retail demand in Germany is constantly contracting.

The pair currently trades last at 0.87667.

The previous day high was 0.8786 while the previous day low was 0.8729. The daily 38.2% Fib levels comes at 0.8751, expected to provide support. Similarly, the daily 61.8% fib level is at 0.8764, expected to provide support.

The EUR/GBP pair is making efforts in extending its recovery above the immediate resistance of 0.8770 in the Asian session. The cross witnessed a stellar buying interest on Tuesday after dropping to near 0.8730. The Pound Sterling came inside the volatile territory after Bank of England (BoE) interest rate-setter Silvana Tenreyro advocated a contra approach to bring down stubborn inflation.

BoE Tenreyro advocated for consideration of cutting rates sooner than thought as the absence of cost-push shocks would bring down inflation well below targets. He further added, “I expect lower price inertia from second-round effects via wage growth, given a lower rate of headline inflation.”

Contrary to that, BoE Chief Economist Huw Pill said on Tuesday that caution is still needed in assessing inflation prospects on account of the potential persistence of domestically generated inflation, as reported by Reuters.

Inflationary pressures in the United Kingdom have remained extremely high led by a shortage of labor due to the early retirement adaptation approach by individuals. Apart from that, rising food prices are continuously fueling overall inflation and in turn building a burden on households.

On the Eurozone front, fears of a recession are accelerating as retail demand in Germany is constantly contracting. Apart from that, rising oil prices are expected to shock inflationary pressures again. Contrary to that, “Joint Economic Forecasts expect a 0.1% expansion in the gross domestic product (GDP) in the first quarter in the German economy. This follows a 0.4% contraction in the fourth quarter of 2022.”

Technical Levels: Supports and Resistances

EURGBP currently trading at 0.8767 at the time of writing. Pair opened at 0.8761 and is trading with a change of 0.07 % .

The pair is trading below its 20 Daily moving average @ 0.8804, below its 50 Daily moving average @ 0.8833 , below its 100 Daily moving average @ 0.8782 and above its 200 Daily moving average @ 0.8696

The previous day high was 0.8786 while the previous day low was 0.8729. The daily 38.2% Fib levels comes at 0.8751, expected to provide support. Similarly, the daily 61.8% fib level is at 0.8764, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.8732, 0.8702, 0.8674
• Pivot resistance is noted at 0.8789, 0.8816, 0.8846

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