#EURGBP @ 0.87370 jumps to the highest levels since February 2021 on downbeat UK Retail Sales., @nehcap view: Further upside expected (Pivot Orderbook analysis)
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- EUR/GBP jumps to the highest levels since February 2021 on downbeat UK Retail Sales.
- UK Retail Sales dropped below market forecast and prior in August.
- Three-month-old previous resistance line limits immediate downside moves.
- Buyers approach an upward-sloping trend line from December 2021.
The pair currently trades last at 0.87370.
The previous day high was 0.8721 while the previous day low was 0.8637. The daily 38.2% Fib levels comes at 0.8689, expected to provide support. Similarly, the daily 61.8% fib level is at 0.8669, expected to provide support.
EUR/GBP portrays the market’s disappointment with the UK’s Retail Sales data during Friday’s early morning in Europe. The cross-currency pair takes the bids to refresh the 18-month high following that downbeat UK data.
UK’s Retail Sales for August marked 5.4% YoY contraction versus -4.2% expected and -3.4% prior. Details suggest that the Retail Sales ex-Fuel printed -5.0% the figure compared to -3.4% market consensus and -3.1% (revised down) previous readings.
Following the data, EUR/GBP crossed the three-month-old horizontal hurdle surrounding 0.8720-25.
The resistance breakout also takes clues from the bullish MACD signals to direct the pair buyers towards an upward sloping resistance line from December 2021, around 0.8780 by the press time.
Meanwhile, pullback moves need to break the resistance-turned-support near 0.8725-20 to recall the EUR/GBP sellers.
Even so, the 10-DMA and a two-week-old ascending support line, respectively near 0.8665 and 0.8640, could challenge the pair’s further downside.
Trend: Further upside expected
Technical Levels: Supports and Resistances
EURGBP currently trading at 0.8734 at the time of writing. Pair opened at 0.872 and is trading with a change of 0.16% % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 0.8734 |
| 1 | Today Daily Change | 0.0014 |
| 2 | Today Daily Change % | 0.16% |
| 3 | Today daily open | 0.872 |
The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 0.8586, 50 SMA 0.8501, 100 SMA @ 0.8519 and 200 SMA @ 0.8449.
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 0.8586 |
| 1 | Daily SMA50 | 0.8501 |
| 2 | Daily SMA100 | 0.8519 |
| 3 | Daily SMA200 | 0.8449 |
The previous day high was 0.8721 while the previous day low was 0.8637. The daily 38.2% Fib levels comes at 0.8689, expected to provide support. Similarly, the daily 61.8% fib level is at 0.8669, expected to provide support.
Note the levels of interest below:
- Pivot support is noted at 0.8664, 0.8609, 0.8581
- Pivot resistance is noted at 0.8748, 0.8776, 0.8831
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 0.8721 |
| Previous Daily Low | 0.8637 |
| Previous Weekly High | 0.8712 |
| Previous Weekly Low | 0.8566 |
| Previous Monthly High | 0.8653 |
| Previous Monthly Low | 0.8340 |
| Daily Fibonacci 38.2% | 0.8689 |
| Daily Fibonacci 61.8% | 0.8669 |
| Daily Pivot Point S1 | 0.8664 |
| Daily Pivot Point S2 | 0.8609 |
| Daily Pivot Point S3 | 0.8581 |
| Daily Pivot Point R1 | 0.8748 |
| Daily Pivot Point R2 | 0.8776 |
| Daily Pivot Point R3 | 0.8831 |
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