The EURGBP pair at a rate of 0.86318 sees dip-buying interest in the early European session, but does not receive further momentum.
…
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 attracts dip-buying during the early European session, albeit lacks follow-through.
The pair currently trades last at 0.86318.
The previous day high was 0.8634 while the previous day low was 0.8599. The daily 38.2% Fib levels comes at 0.8621, expected to provide support. Similarly, the daily 61.8% fib level is at 0.8612, expected to provide support.
The EUR/GBP cross reverses an early European session dip to the 0.8620 region and climbs back closer to its highest level since August 11 touched this Tuesday. Spot prices currently trade around the 0.8630-0.8635 zone and look to build on the recent strong gains registered over the past two days.
Diminishing odds for more aggressive policy tightening by the Bank of England (BoE) continue to undermine the British Pound (GBP), which, in turn, assists the EUR/GBP cross to attract some dip-buying. In fact, BoE Governor Andrew Bailey had told lawmakers recently that the central bank is now “much nearer” to ending its run of interest rate increases. Furthermore, reviving recession fears and signs that the UK labour market is cooling, might put pressure on the BoE to pause its rate-hiking cycle soon.
That said, the current market pricing indicates around a 30% chance for another BoE rate hike in November. Moreover, and the first-rate cut is still not priced in until H2 2024. This, in turn, is holding back traders from placing fresh bearish bets around the GBP, which should keep a lid on any meaningful appreciating move for the EUR/GBP cross. Investors also seem reluctant and might prefer to wait on the sidelines ahead of the highly-anticipated BoE monetary policy meeting, scheduled on Thursday.
In the meantime, the European Central Bank’s (ECB) dovish rate decision last Thursday might further contribute to capping the upside for the EUR/GBP cross. The ECB opted to hike rates for the 10th straight time, by 25 bps, taking its main rate to an all-time high level of 4%. The downgrading of CPI and GDP growth forecasts for 2024 and 2025, however, suggested that the 14-month-long policy tightening cycle could have reached its peak already and that further hikes may be off the table for now.
From a technical perspective, meanwhile, the overnight sustained break and acceptance above the 100-day Simple Moving Average (SMA) – for the first time since early May – could be seen as a fresh trigger for bullish traders. Hence, any corrective decline could now be seen as a buying opportunity and is more likely to remain limited. Traders now look to the release of the final Eurozone CPI print for short-term opportunities. The focus will then shift to the latest UK consumer inflation figures on Wednesday.
Technical Levels: Supports and Resistances
EURGBP currently trading at 0.8636 at the time of writing. Pair opened at 0.8634 and is trading with a change of 0.02 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 0.8636 |
| 1 | Today Daily Change | 0.0002 |
| 2 | Today Daily Change % | 0.0200 |
| 3 | Today daily open | 0.8634 |
The pair is trading above its 20 Daily moving average @ 0.8577, above its 50 Daily moving average @ 0.8586 , above its 100 Daily moving average @ 0.8609 and below its 200 Daily moving average @ 0.8712
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 0.8577 |
| 1 | Daily SMA50 | 0.8586 |
| 2 | Daily SMA100 | 0.8609 |
| 3 | Daily SMA200 | 0.8712 |
The previous day high was 0.8634 while the previous day low was 0.8599. The daily 38.2% Fib levels comes at 0.8621, expected to provide support. Similarly, the daily 61.8% fib level is at 0.8612, expected to provide support.
Note the levels of interest below:
- Pivot support is noted at 0.861, 0.8586, 0.8574
- Pivot resistance is noted at 0.8646, 0.8658, 0.8682
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 0.8634 |
| Previous Daily Low | 0.8599 |
| Previous Weekly High | 0.8631 |
| Previous Weekly Low | 0.8558 |
| Previous Monthly High | 0.8669 |
| Previous Monthly Low | 0.8493 |
| Daily Fibonacci 38.2% | 0.8621 |
| Daily Fibonacci 61.8% | 0.8612 |
| Daily Pivot Point S1 | 0.8610 |
| Daily Pivot Point S2 | 0.8586 |
| Daily Pivot Point S3 | 0.8574 |
| Daily Pivot Point R1 | 0.8646 |
| Daily Pivot Point R2 | 0.8658 |
| Daily Pivot Point R3 | 0.8682 |
[/s2If]
Download Nehcap EAWe have two EAs that are operational on our LIVE accounts.
- EA-FIX: Check out the details here. Download EA-FIX . EA-FIX is a non-grid HFT scalper.
- EA-GROWTH: High quality low dd EA using trend grids. Download EA_GROWTHJoin Our Telegram Group
