The EURGBP currency pair, currently trading at 0.85446, is making progress and moving towards 0.8543. It has increased by 0.02% throughout the day.

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• EUR/GBP gains ground around 0.8543, up 0.02% for the day.

The pair currently trades last at 0.85446.

The previous day high was 0.8563 while the previous day low was 0.8533. The daily 38.2% Fib levels comes at 0.8552, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.8545, expected to provide resistance.

The EUR/GBP cross holds positive ground above 0.8540 in the Asian session on Tuesday. The cross trades in positive territory for the third day in a row. Market participants await the inflation data from both the UK and the Eurozone for fresh impetus ahead of the European Central Bank (ECB) President Lagarde’s speech on Friday.

On Monday, the annual German Producer Price Index (PPI) for July fell to -6%, compared to a 0.1% increase and a market expectation of -5.1%. The monthly PPI figure decreased to -1.1%, below the market consensus of -0.2% and the prior reading of -0.3%. Additionally, the German Buba Monthly Report revealed that inflation could stay above the central bank’s target for longer. Investors placed hawkish wagers on the European Central Bank (ECB) due to inflation risks on the upside. This, in turn, lifts the Euro against its rivals.

On the other hand, traders expect the Bank of England (BoE) to tighten monetary policy further, pricing in a 25 basis point (bps) rate hike to 5.50% in its September meeting. The fear of an aggressive rate hike by the BoE might exert pressure on the Pound Sterling as investors worry that it might impact negatively the UK economy after 14 consecutive rate hikes. However, the upbeat UK GDP and CPI data increase the likelihood of further BoE policy tightening.

Later this week, the Eurozone Current Account, S&P Purchasing Managers’ Index (PMI), and German Gross Domestic Product (GDP) Q2 will be released later this week. The UK docket will feature S&P Global PMIs and the GfK Consumer Confidence. The European Central Bank (ECB) President Christine Lagarde will likely provide additional guidance on their monetary policies. This event will be critical for determining a clear movement for the EUR/GBP cross

Technical Levels: Supports and Resistances

EURGBP currently trading at 0.8543 at the time of writing. Pair opened at 0.8542 and is trading with a change of 0.01 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.8588, 50 SMA 0.8584, 100 SMA @ 0.8655 and 200 SMA @ 0.8718.

The previous day high was 0.8563 while the previous day low was 0.8533. The daily 38.2% Fib levels comes at 0.8552, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.8545, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.8529, 0.8516, 0.8499
• Pivot resistance is noted at 0.8559, 0.8576, 0.8589

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