The EURGBP currency pair, currently at a rate of 0.85544, has gained interest from buyers, causing it to recover from losses experienced at the beginning of the week.

…
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 picks up bids to reverse week-start losses.

The pair currently trades last at 0.85544.

The previous day high was 0.8564 while the previous day low was 0.8543. The daily 38.2% Fib levels comes at 0.8551, expected to provide support. Similarly, the daily 61.8% fib level is at 0.8556, expected to provide resistance.

EUR/GBP remains on the front foot around 0.8550 as it reverses the week-start losses heading amid the early hours of the European session on Tuesday. In doing so, the cross-currency pair struggles to justify the European Central Bank (ECB) statements amid mixed signals from the UK spending clues. Also likely to challenge the pair traders is the cautious mood ahead of the key data from the Eurozone and the UK, not to forget ECB President Christine Lagarde’s speech.

The Irish Business Publication, The Currency, recently shared details of the August 31 interview with ECB Chief Economist Phillip Lane where the policymaker praised softening in the August inflation data but cited the need for sustained easing in inflation to defend the policy doves.

That said, ECB President Christine Lagarde highlighted the need for central banks to keep the inflation expectations firmly anchored on Monday. On the same line was the President of the Deutsche Bundesbank and the ECB Council Member Joachim Nagel who advocated for price stability while hesitating from further details.

Elsewhere, Reuters came out with the Barclay Card data while saying, “Annual growth in the UK consumer spending on credit and debit cards slowed to 2.8% in August from 4.0% in July.” However, the UK’s BRC Like-for-Like Retail Sales grew 4.3% YoY for August versus 1.8% prior.

While the British spending details are mixed, a suggestion from the UK Think Tank to infuse more liquidity into the UK capital markets with pensions seems to lure the Bank of England (BoE) hawks, due to the likely lift to the inflation, which in turn lures the EUR/GBP bears.

However, a confirmation from the Eurozone Producer Price Index (PPI) for July, US Factory Orders for the said month and a speech from ECB’s Lagarde become necessary for clear directions. Above all, Thursday’s Bank of England (BoE) Monetary Policy Report Hearings will be crucial for traders to watch to watch as the hawkish bias about the UK central bank recedes of late.

A two-month-old bullish triangle formation, currently between 0.8510 and 0.8630, keeps the EUR/USD pair buyers hopeful.

Technical Levels: Supports and Resistances

EURGBP currently trading at 0.8552 at the time of writing. Pair opened at 0.855 and is trading with a change of 0.02% % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.8575, 50 SMA 0.8584, 100 SMA @ 0.8632 and 200 SMA @ 0.8713.

The previous day high was 0.8564 while the previous day low was 0.8543. The daily 38.2% Fib levels comes at 0.8551, expected to provide support. Similarly, the daily 61.8% fib level is at 0.8556, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.8541, 0.8532, 0.8521
• Pivot resistance is noted at 0.8561, 0.8572, 0.8581

[/s2If]
Download Nehcap EAWe have two EAs that are operational on our LIVE accounts.

1. EA-FIX: Check out the details here. Download EA-FIX . EA-FIX is a non-grid HFT scalper.
2. EA-GROWTH: High quality low dd EA using trend grids. Download EA_GROWTHJoin Our Telegram Group

Share this:

• Facebook
• X

Like this:

Like Loading...