#EURGBP @ 0.87783 drifts lower for the second straight day and retreats further from the weekly top. (Pivot Orderbook analysis)

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for FREE REGISTER to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level1)]

• EUR/GBP drifts lower for the second straight day and retreats further from the weekly top.
• The ECB’s 25 bps rate hike fails to impress the Euro bulls or lend any support to the cross.
• Investors now look to ECB President Lagarde’s comments for some meaningful impetus.

The pair currently trades last at 0.87783.

The previous day high was 0.8835 while the previous day low was 0.8796. The daily 38.2% Fib levels comes at 0.8811, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.882, expected to provide resistance.

The EUR/GBP cross extends the overnight retracement slide from the 0.8835 region, or the weekly low and remains under some selling pressure for the second successive day on Thursday. The cross remains on the defensive below the 0.8800 mark through the mid-European session and moves little after the European Central Bank (ECB) announced its policy decision.

As was widely expected, the ECB raises its benchmark interest rates by 25 bps at the end of the May monetary policy meeting and noted that the inflation outlook continues to be too high for too long. In the accompanying policy statement, the central bank reiterated that it stands ready to adjust all of its instruments within its mandate to ensure that inflation returns to its 2% target over the medium term. In the absence of any hawkish surprise, the outlook fails to impress the Euro bulls and exerts downward pressure on the EUR/GBP cross.

The British Pound, on the other hand, continues to draw support from rising bets for another 25 bps rate hike by the Bank of England (BoE). This is seen as another factor weighing on the EUR/GBP cross, though the downside remains cushioned. Traders seem reluctant to place aggressive bets and prefer to wait for ECB President Christine Lagarde’s comments at the post-meeting press conference. Investors will look for fresh cues about the future rate-hike path, which will drive the shared currency and provide a fresh impetus to the cross.

Technical Levels: Supports and Resistances

EURGBP currently trading at 0.8804 at the time of writing. Pair opened at 0.8804 and is trading with a change of 0.0 % .

The pair is trading below its 20 Daily moving average @ 0.8813, below its 50 Daily moving average @ 0.8814 , below its 100 Daily moving average @ 0.882 and above its 200 Daily moving average @ 0.8728

The previous day high was 0.8835 while the previous day low was 0.8796. The daily 38.2% Fib levels comes at 0.8811, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.882, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.8788, 0.8772, 0.8749
• Pivot resistance is noted at 0.8828, 0.8851, 0.8867

[/s2If]
Nehcap Expert Advisor
The NEHCAP MT4 EA is high quality professional trading system geared to generate returns without using GRID or martingales. Each trade has strict risk per trade parameter. The pairs under management include EURUSD, GBPUSD, AUDCAD, AUDNZD,GBPAUD, EURAUD, EURCAD, CHFJPY and many more.
The system is trading live: LIVE ACCOUNT TRACKING
You can run it free. Apply for a free trial and track our account. Buy the system or use profit share mechanism to generate returns on your MT4.
Join Our Telegram Group