The EURGBP has been increasing for four consecutive days and reached a level above its highest point of the past week on Thursday. Its current rate is 0.86081.
…
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 scales higher for the fourth straight day and touched over a one-week high on Thursday.
The pair currently trades last at 0.86081.
The previous day high was 0.8609 while the previous day low was 0.8525. The daily 38.2% Fib levels comes at 0.8577, expected to provide support. Similarly, the daily 61.8% fib level is at 0.8557, expected to provide support.
The EUR/GBP cross gains some positive traction for the fourth successive day on Thursday and trades just above the 0.8600 mark during the Asian session, or over a one-week high.
The British Pound’s relative underperformance could be solely attributed to some repositioning trade ahead of the key central bank event risk – the highly-anticipated Bank of England (BoE) policy meeting. Apart from this, the recent hawkish comments by several European Central Bank (ECB) officials continue to lend some support to the shared currency and act as a tailwind for the EUR/GBP cross. It is worth recalling that ECB Executive Board member Isabel Schnabel said earlier this week that officials can’t afford to be complacent about inflation and shouldn’t worry about raising borrowing costs too far.
Separately, Slovak central bank governor Peter Kazimir said that if the ECB fails to root out inflation now, it could get entrenched in the economy and a continuation of monetary policy tightening is the only reasonable way ahead. The markets were quick to react and have now fully priced in a 4% terminal rate by October, with a 25 bps hike at the July ECB meeting seen as almost a done deal. This, in turn, assists the EUR/GBP cross to build on this week’s recovery move from the 0.8520-0.8515 region, or its lowest level since August 2022, though hawkish BoE expectations might cap any further gains.
The stronger UK consumer inflation figures released on Wednesday lifted market bets for a jumbo 50 bps BoE rate hike later today. Moreover, sticky inflation and a persistently tight labor market have forced investors to increase their forecast for peak interest rates to 6.01% by February 2024. In fact, the UK Office for National Statistics (ONS) reported that the headline UK CPI unexpectedly held steady at the 8.7% YoY pace in May, while core CPI – which excludes volatile energy, food, alcohol and tobacco prices – accelerated from 6.8% in April to the 7.1% YoY or the highest rate since March 1992.
This might hold back traders from placing fresh bullish bets and keep a lid on the EUR/GBP cross, at least for the time being. Hence, it will be prudent to wait for strong follow-through buying before confirming that spot prices have formed a near-term bottom ahead of the 0.8500 psychological mark and positioning for any further appreciating move.
Technical Levels: Supports and Resistances
EURGBP currently trading at 0.861 at the time of writing. Pair opened at 0.8602 and is trading with a change of 0.09 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 0.8610 |
| 1 | Today Daily Change | 0.0008 |
| 2 | Today Daily Change % | 0.0900 |
| 3 | Today daily open | 0.8602 |
The pair is trading above its 20 Daily moving average @ 0.8597, below its 50 Daily moving average @ 0.8696 , below its 100 Daily moving average @ 0.8763 and below its 200 Daily moving average @ 0.8751
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 0.8597 |
| 1 | Daily SMA50 | 0.8696 |
| 2 | Daily SMA100 | 0.8763 |
| 3 | Daily SMA200 | 0.8751 |
The previous day high was 0.8609 while the previous day low was 0.8525. The daily 38.2% Fib levels comes at 0.8577, expected to provide support. Similarly, the daily 61.8% fib level is at 0.8557, expected to provide support.
Note the levels of interest below:
- Pivot support is noted at 0.8548, 0.8495, 0.8464
- Pivot resistance is noted at 0.8632, 0.8662, 0.8716
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 0.8609 |
| Previous Daily Low | 0.8525 |
| Previous Weekly High | 0.8613 |
| Previous Weekly Low | 0.8522 |
| Previous Monthly High | 0.8835 |
| Previous Monthly Low | 0.8583 |
| Daily Fibonacci 38.2% | 0.8577 |
| Daily Fibonacci 61.8% | 0.8557 |
| Daily Pivot Point S1 | 0.8548 |
| Daily Pivot Point S2 | 0.8495 |
| Daily Pivot Point S3 | 0.8464 |
| Daily Pivot Point R1 | 0.8632 |
| Daily Pivot Point R2 | 0.8662 |
| Daily Pivot Point R3 | 0.8716 |
[/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
