The EURGBP pair, currently trading at 0.86404, experiences a substantial correction nearing 0.8630 in anticipation of the release of the German HICP data for September.
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- EUR/GBP corrects significantly to near 0.8630 ahead of the German HICP data for September.
The pair currently trades last at 0.86404.
The previous day high was 0.8703 while the previous day low was 0.8653. The daily 38.2% Fib levels comes at 0.8672, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.8684, expected to provide resistance.
The EUR/GBP pair drops vertically to near 0.8630 in the European session. The asset faces selling pressure ahead of Germany’s preliminary Harmonized Index of Consumer Prices (HICP) data for September, which will be published at 12:00 GMT.
Germany’s annual HICP inflation is seen dropping sharply to 4.5% in September from 6.4% in August. The core HICP is likely to rise 0.3% in September, compared with a 0.4% acceleration in August. The headline Eurozone HICP is expected to rise 4.5% annually in September, a slowdown from August’s 5.2% increase.
Inflationary pressures in the German economy are expected to soften despite rising energy prices, which indicate a sharp slowdown in consumer spending momentum. Last week, European Central Bank (ECB) President Christine Lagarde reiterated the need for keeping interest rates sufficiently restrictive for a longer period as inflation is still high despite progress in slowdown. ECB Lagarde highlighted the risk of a tight labor market that may keep inflationary pressures intact.
Later, investors’ focus will shift to the Eurozone HICP data, which will be released on Friday.
On the Pound Sterling front, fears of a slowdown in the UK economy have deepened as the Services PMI shifted to contraction territory. Middle-class families have cut spending on services as high inflation squeezes real income.
Technical Levels: Supports and Resistances
EURGBP currently trading at 0.8639 at the time of writing. Pair opened at 0.8655 and is trading with a change of -0.18 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 0.8639 |
| 1 | Today Daily Change | -0.0016 |
| 2 | Today Daily Change % | -0.1800 |
| 3 | Today daily open | 0.8655 |
The pair is trading above its 20 Daily moving average @ 0.861, above its 50 Daily moving average @ 0.8598 , above its 100 Daily moving average @ 0.8603 and below its 200 Daily moving average @ 0.8711
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 0.8610 |
| 1 | Daily SMA50 | 0.8598 |
| 2 | Daily SMA100 | 0.8603 |
| 3 | Daily SMA200 | 0.8711 |
The previous day high was 0.8703 while the previous day low was 0.8653. The daily 38.2% Fib levels comes at 0.8672, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.8684, expected to provide resistance.
Note the levels of interest below:
- Pivot support is noted at 0.8637, 0.862, 0.8587
- Pivot resistance is noted at 0.8688, 0.872, 0.8738
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 0.8703 |
| Previous Daily Low | 0.8653 |
| Previous Weekly High | 0.8700 |
| Previous Weekly Low | 0.8599 |
| Previous Monthly High | 0.8669 |
| Previous Monthly Low | 0.8493 |
| Daily Fibonacci 38.2% | 0.8672 |
| Daily Fibonacci 61.8% | 0.8684 |
| Daily Pivot Point S1 | 0.8637 |
| Daily Pivot Point S2 | 0.8620 |
| Daily Pivot Point S3 | 0.8587 |
| Daily Pivot Point R1 | 0.8688 |
| Daily Pivot Point R2 | 0.8720 |
| Daily Pivot Point R3 | 0.8738 |
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