The EURGBP currency pair is facing difficulty in taking advantage of its small rebound from the 0.8600 level.

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• EUR/GBP struggles to capitalize on its modest intraday bounce from the 0.8600 mark.

The pair currently trades last at 0.86139.

The previous day high was 0.8656 while the previous day low was 0.8596. The daily 38.2% Fib levels comes at 0.8633, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.8619, expected to provide resistance.

The EUR/GBP cross attracts fresh buying near the 0.8600 mark on Friday and stalls the overnight pullback from a nearly two-week high touched in the aftermath of the Bank of England (BoE) policy decision. Spot prices, however, struggle to capitalize on the modest intraday uptick, warranting some caution before positioning for an extension of this week’s goodish bounce from mid-0.8500s.

The British Pound’s (GBP) relative underperformance could be attributed to the less hawkish signals from the BoE on Thursday, saying that the current monetary policy stance is “restrictive”. The markets took this as an indication that the tightening cycle may be nearing an end and scaled back expectations for the peak rate. The outlook continues to undermine the GBP and lends some support to the EUR/GBP cross.

Traders, meanwhile, seem reluctant to place bullish bets around the shared currency in the wake of growing speculations that the European Central Bank (ECB) might also pause its historic hiking campaign soon. In fact, Fitch Ratings, in its latest report released this Friday, said that falling Eurozone inflation puts ECB rates peak within sight. This, in turn, is seen acting as a headwind for the EUR/GBP cross.

The aforementioned fundamental backdrop makes it prudent to wait for strong follow-through buying before confirming that the recent corrective decline from the 0.8700 mark has run its course. Market participants now look to a scheduled speech by the BoE Chief Economist Huw Pill, which might influence the Sterling Pound and produce short-term opportunities around the EUR/GBP cross on the last day of the week.

Technical Levels: Supports and Resistances

EURGBP currently trading at 0.8615 at the time of writing. Pair opened at 0.8616 and is trading with a change of -0.01 % .

The pair is trading above its 20 Daily moving average @ 0.8589, above its 50 Daily moving average @ 0.8589 , below its 100 Daily moving average @ 0.868 and below its 200 Daily moving average @ 0.8725

The previous day high was 0.8656 while the previous day low was 0.8596. The daily 38.2% Fib levels comes at 0.8633, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.8619, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.8589, 0.8563, 0.853
• Pivot resistance is noted at 0.8649, 0.8682, 0.8708

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