#EURGBP @ 0.86913 gains some positive traction on Tuesday, albeit struggles to capitalize on the strength. (Pivot Orderbook analysis)
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- EUR/GBP gains some positive traction on Tuesday, albeit struggles to capitalize on the strength.
- The immediate market reaction to softer UK jobs data fades rather quickly amid a weaker USD.
- The German ZEW survey, Eurozone GDP print fail to impress the Euro bulls or boost to the cross.
The pair currently trades last at 0.86913.
The previous day high was 0.8719 while the previous day low was 0.8677. The daily 38.2% Fib levels comes at 0.8693, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.8703, expected to provide resistance.
The EUR/GBP cross attracts fresh buying on Tuesday and reverses a major part of the previous day’s losses, though the intraday uptick runs out of steam near the 0.8715-0.8720 region. Spot prices quickly slide back below the 0.8700 mark during the early European session and remain well within the striking distance of the YTD low touched last Thursday.
The British Pound weakens a bit following the release of the UK employment details and turns out to be a key factor that lends some support to the EUR/GBP cross. In fact, the UK Office for National Statistics (ONS) report that the number of people claiming unemployment-related benefits rose by 46.7K in April as compared to the 26.5K in the previous month and consensus estimates for a fall of 10.8 K. Furthermore, the jobless rate ticked higher to 3.9% from 3.8%, suggesting that the flatlining economy has started to take a toll of Britain’s labour market.
Additional details of the report showed that UK Average Earnings excluding bonuses rose by 6.7% in March, softer than the 6.8% expected, though slightly higher than April’s 6.6%. The data, meanwhile, does little to influence expectations about the need for further rate hikes by the Bank of England (BoE) and is largely overshadowed by the emergence of fresh selling around the US Dollar (USD), which benefits the Sterling Pound. This, in turn, is seen as a key factor that keeps a lid on any meaningful upside for the EUR/GBP cross and warrants caution for bulls.
The shared currency’s relative underperformance, meanwhile, could be attributed to the disappointing release of the German ZEW Economic Sentiment Index, which deteriorated sharply to -10.7 in May as compared to 4.1 previous and -5.5 expected. Separately, the preliminary estimates showed that the Eurozone economy expanded by 0.1% during the three months to March of 2023, matching the pace registered in the fourth quarter of 2022. The data, however, does little to impress the Euro bulls or provide any impetus to the EUR/GBP cross.
Technical Levels: Supports and Resistances
EURGBP currently trading at 0.8691 at the time of writing. Pair opened at 0.8679 and is trading with a change of 0.14 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 0.8691 |
| 1 | Today Daily Change | 0.0012 |
| 2 | Today Daily Change % | 0.1400 |
| 3 | Today daily open | 0.8679 |
The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.8777, 50 SMA 0.8795, 100 SMA @ 0.8816 and 200 SMA @ 0.874.
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 0.8777 |
| 1 | Daily SMA50 | 0.8795 |
| 2 | Daily SMA100 | 0.8816 |
| 3 | Daily SMA200 | 0.8740 |
The previous day high was 0.8719 while the previous day low was 0.8677. The daily 38.2% Fib levels comes at 0.8693, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.8703, expected to provide resistance.
Note the levels of interest below:
- Pivot support is noted at 0.8665, 0.865, 0.8623
- Pivot resistance is noted at 0.8707, 0.8734, 0.8748
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 0.8719 |
| Previous Daily Low | 0.8677 |
| Previous Weekly High | 0.8746 |
| Previous Weekly Low | 0.8661 |
| Previous Monthly High | 0.8875 |
| Previous Monthly Low | 0.8729 |
| Daily Fibonacci 38.2% | 0.8693 |
| Daily Fibonacci 61.8% | 0.8703 |
| Daily Pivot Point S1 | 0.8665 |
| Daily Pivot Point S2 | 0.8650 |
| Daily Pivot Point S3 | 0.8623 |
| Daily Pivot Point R1 | 0.8707 |
| Daily Pivot Point R2 | 0.8734 |
| Daily Pivot Point R3 | 0.8748 |
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