#EURGBP @ 0.87172 The extended its gains, despite the overall bearish bias in euro crosses. (Pivot Orderbook analysis)

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• The EUR/GBP extended its gains, despite the overall bearish bias in euro crosses.
• From a daily chart perspective, the EUR/GBP is headed upwards.
• Short term, the EUR/GBP 4-hour chart suggests the cross could drop before recording a fresh YTD high.

The pair currently trades last at 0.87172.

The previous day high was 0.8684 while the previous day low was 0.8626. The daily 38.2% Fib levels comes at 0.8648, expected to provide support. Similarly, the daily 61.8% fib level is at 0.8662, expected to provide support.

On Thursday, the EUR/GBP rallied for the second day in the week, registering a fresh weekly high at around 0.8720, spurred by overall British pound courtesy, amidst uncertainty around the new Prime Minister Liz Truss’s government. At the time of writing, the EUR/GBP is trading at 0.8717, unchanged as the Asian session begins.

The EUR/GBP advanced for the second day during the week, facing a solid resistance near the YTD high at 0.8721. The Relative Strength Index (RSI) is headed north but shifted flat around 66.93, with little room before reaching overbought conditions after last week’s ECB’s decision, ahead of the following week’s BoE. It’s worth noting that a decisive break above 0.8721 could pave the way towards the 0.8800 mark, but price action might shift choppy, in the vicinity of a 50 bps rate hike by the BoE.

The EUR/GBP 4-hour scale offers a different bias than the daily chart. Even though the moving averages (EMAs) are below the spot price, the divergence between the RSI, recording lower highs, and price action at higher highs might open the door for further downside.

Therefore, the EUR/GBP first support would be the 0.8700 mark, followed by the daily pivot at 0.8691, followed by the confluence of the 50-EMA and the S1 pivot point at 0.8660/62. Once cleared, the cross will tumble towards the confluence of the S2 pivot and the 100-EMA at around 0.8605/08.

Technical Levels: Supports and Resistances

EURGBP currently trading at 0.8718 at the time of writing. Pair opened at 0.8648 and is trading with a change of 0.81 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 0.8573, 50 SMA 0.8496, 100 SMA @ 0.8516 and 200 SMA @ 0.8448.

The previous day high was 0.8684 while the previous day low was 0.8626. The daily 38.2% Fib levels comes at 0.8648, expected to provide support. Similarly, the daily 61.8% fib level is at 0.8662, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.8621, 0.8594, 0.8563
• Pivot resistance is noted at 0.868, 0.8711, 0.8738

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