#EURGBP @ 0.86939 ECB keeps deposit rate unchanged at 4%, citing concerns over Eurozone’s economic outlook.

…
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)]

• ECB keeps deposit rate unchanged at 4%, citing concerns over Eurozone’s economic outlook.

The pair currently trades last at 0.86939.

The previous day high was 0.8727 while the previous day low was 0.8703. The daily 38.2% Fib levels comes at 0.8718, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.8712, expected to provide resistance.

EUR/GBP reversed its course on Thursday after the European Central Bank (ECB) kept rates on hold due to a deteriorating economic outlook for the bloc. Even though the economic perspective in the United Kingdom (UK) is not encouraging, as data reignited fears of stagflation, the Pound Sterling (GBP) appreciates against the Euro (EUR). The pair trades at 0.8692, down 0.36%.

Earlier, the ECB decided to pause its tightening cycle, holding the deposit rate unchanged at 4%, while mentioning that it could be enough to curb inflation towards its 2% target if it remains at current levels for a longer time.

Following the bank’s decision, the ECB’s President Christine Lagarde said the Eurozone (EU) economy is weakening but added that inflationary pressures remain strong and could be aggravated due to the Middle East crisis. She added the ECB would remain data-dependent. Regarding a balance sheet reduction, Lagarde said there have not been discussions of an early reduction of the Pandemic Emergency Purchase Program (PEPP).

On the UK front, the Confederation of British Industry (CBI) revealed that retail sales reported their worst October for sales, as households struggle amid difficult economic times, with high inflation and economic growth slumping. Sales plunged -36, well below the -16 contraction estimated by analysts

At the time of writing, the EUR/GBP is briskly testing the 200-day moving average (DMA) at 0.8992. A clear break would expose the current week’s low of 0.8682, followed by the 50-DMA at 0.8625. Further downside is seen at 0.8600. On the contrary, if the EUR/GBP stays above 0.8700, that could open the door to challenge the October 20 high at 0.8740, ahead of 0.8800.

Technical Levels: Supports and Resistances

EURGBP currently trading at 0.8694 at the time of writing. Pair opened at 0.8724 and is trading with a change of -0.34 % .

The pair is trading above its 20 Daily moving average @ 0.8669, above its 50 Daily moving average @ 0.8624 , above its 100 Daily moving average @ 0.8605 and below its 200 Daily moving average @ 0.8695

The previous day high was 0.8727 while the previous day low was 0.8703. The daily 38.2% Fib levels comes at 0.8718, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.8712, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.8709, 0.8694, 0.8685
• Pivot resistance is noted at 0.8733, 0.8742, 0.8758

[/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...