#EURGBP @ 0.86753 EUR/GRBP is witnessing back-and-forth moves around 0.8670 ahead of UK Inflation data. (Pivot Orderbook analysis)

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• EUR/GRBP is witnessing back-and-forth moves around 0.8670 ahead of UK Inflation data.
• The cross remained lackluster despite mixed UK employment data and a weaker Eurozone ZEW Survey.
• An upbeat UK earnings data will facilitate households to offset their inflation-adjusted payouts.

The pair currently trades last at 0.86753.

The previous day high was 0.8694 while the previous day low was 0.8648. The daily 38.2% Fib levels comes at 0.8676, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.8665, expected to provide support.

The EUR/GBP pair is displaying topsy-turvy moves in a narrow range of 0.8664-0.8678 in the Asian session. The asset didn’t display a meaningful response to the UK employment data, released on Tuesday. On a broader note, the asset is oscillating in an inventory adjustment phase in a 0.8649-0.8672 range.

A mixed UK employment data kept the pound bulls on a sideways note but households are quite delighted with upbeat Average Hourly Earnings data. The earnings data improved dramatically to 5.2% vs. the estimates of 5.0% and the prior release of 4.7%. Forced higher payouts to the households due to soaring price pressures were unable to get offset by lower-valued paychecks. Now an increment in households’ earnings will support them to cater to soaring energy bills and food prices.

Investors should be aware of the fact that the UK economy reported an increase in jobless benefits claims by 6.3k against an expectation of a decline of 9.2k. While the Unemployment Rate scaled down to 3.6% in relation to the forecasts and the prior release of 3.8%.

Going forward, the UK inflation data will be a major trigger for the cross. The economic data is seen higher at 10.2% vs. 10.1% reported earlier on an annual basis. Also, the core CPI is seen higher at 6.3% vs. 6.2% for June. A double-digit inflation figure will compel the Bank of England (BOE) to come forward with a bumper rate hike next week.

Meanwhile, the shared currency bulls have defended themselves despite a significant decline in ZEW Survey- Economic Sentiment. The economic data declined sharply to -60.7 against the expectations of -52 and the prior release of -54.9.

Technical Levels: Supports and Resistances

EURGBP currently trading at 0.8672 at the time of writing. Pair opened at 0.8673 and is trading with a change of -0.01 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 0.8563, 50 SMA 0.8494, 100 SMA @ 0.8514 and 200 SMA @ 0.8448.

The previous day high was 0.8694 while the previous day low was 0.8648. The daily 38.2% Fib levels comes at 0.8676, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.8665, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.8649, 0.8625, 0.8603
• Pivot resistance is noted at 0.8696, 0.8718, 0.8742

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