#EURGBP @ 0.86324 is expected to display more losses to near 0.8620 amid escalating Eurozone energy crisis. (Pivot Orderbook analysis)

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for PREMIUM VERSION HERE 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_level4)]

• EUR/GBP is expected to display more losses to near 0.8620 amid escalating Eurozone energy crisis.
• As Eurozone HICP has scaled above 9%, odds for a 75 bps rate hike by the ECB have strengthened.
• UK PM contender Liz Truss has promised o scale down energy bills if she becomes the next PM.

The pair currently trades last at 0.86324.

The previous day high was 0.8677 while the previous day low was 0.8612. The daily 38.2% Fib levels comes at 0.8652, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.8637, expected to provide resistance.

The EUR/GBP pair has given a downside break of the consolidation formed in a narrow range of 0.8634-0.8644 in the Asian session. The cross is expected to decline towards the immediate cushion of 0.8620 as escalating Eurozone energy crisis is weighing over the shared currency bulls. On a broader note, the pair has declined after a failed attempt of overstepping the previous week’s high at 0.8670.

As Russian gas giant Gazprom has adopted a heated route after G7 countries issued a price cap on Russian oil, the energy crisis in the old continent has deepened further. The closure of the Nord Stream 1 pipeline under the Baltic Sea for an indefinite period citing leakage issues has accelerated the energy crisis, energy prices, and energy bills for households for a substantial period. Apart from that, growth prospects have been hit dramatically.

Adding to that, the growth prospects are also expected to witness a serious impact as the European Central Bank (ECB) policymakers are gearing up for hiking its interest rates. It is highly likely that ECB President Christine Lagarde will step up interest rates by 75 basis points (bps), taking it to 1.25%. The most preferred inflation-gauge tool of the ECB, Harmonized Index of Consumer Prices (HICP) has scaled above 9%.

On the UK front, investors are keenly awaiting the outcome of the UK Prime Minster elections. The world’s sixth largest economy has been through political instability after the resignation of UK PM Boris Johnson. The UK economy is also facing the headwinds of soaring energy prices. And, UK Foreign Minister Liz Truss has favored an immediate action to combat ramping up energy bills if she becomes the next Prime Minister.

Technical Levels: Supports and Resistances

EURGBP currently trading at 0.8634 at the time of writing. Pair opened at 0.865 and is trading with a change of -0.18 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 0.8488, 50 SMA 0.8488, 100 SMA @ 0.8493 and 200 SMA @ 0.8443.

The previous day high was 0.8677 while the previous day low was 0.8612. The daily 38.2% Fib levels comes at 0.8652, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.8637, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.8616, 0.8582, 0.8551
• Pivot resistance is noted at 0.868, 0.8711, 0.8745

[/s2If]
Join Our Telegram Group