Investors are waiting for the UK Retail Sales data to provide further guidance, while the EURGBP pair is fluctuating around the 0.8650 level.

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• EUR/GBP is oscillating around 0.8650 as investors await UK Retail Sales data for further guidance.

The pair currently trades last at 0.86475.

The previous day high was 0.8698 while the previous day low was 0.8649. The daily 38.2% Fib levels comes at 0.8668, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.8679, expected to provide resistance.

The EUR/GBP pair is demonstrating back-and-forth moves around 0.8650 in the Asian session. The cross is awaiting the release of the United Kingdom Retail Sales data for June for a decisive move, which will be published at 06.00 GMT.

After loosening labor market conditions and softening inflationary pressures, UK’s Retail Sales data will provide more guidance about the interest rate decision to be announced by the Bank of England (BoE) in August.

As per the estimates, monthly Retail Sales data expanded by 0.2% in June vs. 0.3% in May. Annual Retail Sales data is expected to contract by 1.5% against the former release of -2.1%. Monthly Retail Sales excluding fuel prices is seen unchanged at 0.1%. And, annualized consumer spending data excluding fuel is seen contracting marginally to 1.6% from the former release of -1.7%.

Contracting consumer spending indicates the burden of high inflation and higher interest rates by the Bank of England (BoE). UK households have already postponed the purchase of big-ticket items to address their necessities. Meanwhile, the real income of households could grow as Producer Price Index (PPI) has eased significantly.

Meanwhile, the Euro is facing severe pressure despite investors hoping that the European Central Bank (ECB) will raise interest rates in September too. According to a Reuters poll from economists, the ECB will raise interest rates by 25 basis points on July 27, and a slight majority of whom were now also expecting another hike in September.

Investors should note that ECB President Christine Lagarde remained doors open for more interest rate hikes as core inflation in Eurozone is critically persistent.

Technical Levels: Supports and Resistances

EURGBP currently trading at 0.8649 at the time of writing. Pair opened at 0.865 and is trading with a change of -0.01 % .

The pair is trading above its 20 Daily moving average @ 0.8582, above its 50 Daily moving average @ 0.8607 , below its 100 Daily moving average @ 0.8704 and below its 200 Daily moving average @ 0.873

The previous day high was 0.8698 while the previous day low was 0.8649. The daily 38.2% Fib levels comes at 0.8668, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.8679, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.8633, 0.8616, 0.8583
• Pivot resistance is noted at 0.8683, 0.8715, 0.8732

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