#EURGBP @ 0.89441 declines towards 0.8900 as focus shifts to ECB Lagarde’s speech (Pivot Orderbook analysis)

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The pair currently trades last at 0.89441.

The previous day high was 0.9254 while the previous day low was 0.8853. The daily 38.2% Fib levels comes at 0.9101, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.9006, expected to provide resistance.

The EUR/GBP pair has witnessed a vertical fall after facing barricades around 0.9000 in the early Tokyo session. On a broader note, the cross is declining after failing to sustain above the crucial resistance of 0.9200. The asset is expected to decline further to near 0.8900 ahead of the European Central Bank (ECB) President Christine Lagarde’s speech.

ECB’s Lagarde will likely dictate the likely monetary policy action ahead. ECB policymaker is expected to continue its hawkish stance on interest rate guidance as price pressures are escalating and are needed to be contained sooner. Energy prices are soaring sharply and are impacting the consumption expenditure of households.

On Monday, ECB Governing Council member and German central bank head Joachim Nagel said that decisive rate hikes are needed amid rising risks of inflation expectations getting de-anchored. Nagel favored a decisive action to bring down the inflation rate to 2%.

Apart from the ECB Lagarde’s speech, investors will also focus on the Eurozone Consumer Confidence data, which will release on Thursday. The sentiment data is seen steady at -28.8. Investors should be aware of the fact that the sentiment data is declining consecutively for the past few months.

Meanwhile, pound bulls are focusing on the Gross Domestic Product (GDP) data release, which is due on Friday. The growth rate is expected to decline by 0.1% in line with the prior release. While the annual data will grow by 2.9% similar to the previous reading.

Technical Levels: Supports and Resistances

EURGBP currently trading at 0.8945 at the time of writing. Pair opened at 0.8991 and is trading with a change of -0.51 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 0.8707, 50 SMA 0.855, 100 SMA @ 0.8543 and 200 SMA @ 0.846.

The previous day high was 0.9254 while the previous day low was 0.8853. The daily 38.2% Fib levels comes at 0.9101, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.9006, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.8811, 0.8632, 0.841
• Pivot resistance is noted at 0.9212, 0.9434, 0.9613

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