#EURGBP @ 0.85850 maintains a downward bias, eyes on YTD low amid central bank actions. (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 maintains a downward bias, eyes on YTD low amid central bank actions.
• Downside expected due to higher interest rate differential from BoE.
• The upcoming ECB meeting might shift EUR/GBP’s current path; buyers watch the 0.8600 mark.

The pair currently trades last at 0.85850.

The previous day high was 0.8613 while the previous day low was 0.8584. The daily 38.2% Fib levels comes at 0.8595, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.8602, expected to provide resistance.

EUR/GBP finished Thursday’s session with losses though clings to the 0.8580 area, nearby year-to-date (YTD) lows reached on June 1 at 0.8567. At the time of writing, the EUR/GBP exchanges hands at 0.8585, gaining a minuscule 0.01% as the Asian session commences.

The daily chart portrays the EUR/GBP cross pair as downward biased, set to challenge the yearly lows in the near term. Even though both central banks, the European Central Bank (ECB) and the Bank of England (BoE), are hiking rates, the latter is set to finish with a higher interest rate differential. Therefore, further EUR/GBP downside is expected, but next week’s ECB meeting could rock the boat.

Since the path of least resistance is downwards, EUR/GBP sellers must claim the YTD low at 0.8567. A drop below will expose the December 2 swing low of 0.8551, followed by the 0.8500 figure. Once that level is surpassed, the EUR/GBP could tan towards the August 24 low at 0.8408 before challenging the August 2 low of 0.8339.

Conversely, if EUR/GBP reclaims the 0.8600 mark, that could expose the pair to buying pressure. That could lift the cross toward the 20-day EMA at 0.8644 before challenging the 50-day EMA and the figure confluence at 0.8700.

Technical Levels: Supports and Resistances

EURGBP currently trading at 0.8586 at the time of writing. Pair opened at 0.8602 and is trading with a change of -0.19 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.8662, 50 SMA 0.8739, 100 SMA @ 0.8786 and 200 SMA @ 0.8756.

The previous day high was 0.8613 while the previous day low was 0.8584. The daily 38.2% Fib levels comes at 0.8595, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.8602, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.8586, 0.857, 0.8557
• Pivot resistance is noted at 0.8615, 0.8628, 0.8644

[/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