EURGBP is looking to recapture the weekly high at around 0.8744 as focus has shifted to Euro Retail Sales data. (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)]

• EURGBP is looking to recapture the weekly high at around 0.8744 as focus has shifted to Euro Retail Sales data.
• UK officials are chalking out minutes for the autumn budget to curtail a potential debt crisis.
• ECB President is dedicated to bringing down the inflation rate to 2% by raising critical rates.

The pair currently trades last at 0.8774.

The previous day high was 0.8785 while the previous day low was 0.87. The daily 38.2% Fib levels comes at 0.8753, expected to provide support. Similarly, the daily 61.8% fib level is at 0.8732, expected to provide support.

The EURGBP pair has rebounded after dropping to near 0.8744 in the early Tokyo session. The mild correction in the cross seems over as the Pound bulls have retreated. The asset is expected to recapture the weekly high at 0.8788 as investors are shifting their focus towards fiscal policy measures from the UK government to curtail the debt crisis.

UK Prime Minister Rishi Sunak and Chancellor Jeremy Hunt are putting ‘blood and sweat’ into preparing a roadmap of tightening fiscal policy measures to hunt down already higher debt levels. Plans of spending cuts and rising tax collections are under discussion along with their extent to bring financial stability.

UK Finance Minister is setting out plans of up to 60 billion Pounds ($67.82 billion) of tax rises and spending cuts, including at least 35 billion pounds ($39.56 billion) in cuts for Nov. 17, a report from Guardians. Liquidity reduction will also be supportive of the Bank of England (BOE) amid the highly inflated environment.

Going forward, investors will focus on British Retail Consortium (BRC) Like-for-Like Retail Sales, which are seen lower at 1.5% vs. the prior release of 1.8%. The Retail Sales data is seen lower despite mounting price pressures, which indicates that the retail demand is extremely lower.

On the Eurozone front, European Central Bank (ECB) President Christine Lagarde reiterated on Friday that the central bank will continue to raise rates to bring the inflation rate down to 2%. ECB President didn’t provide any meaningful guidance about the peak of the terminal rate and short-term inflation expectations, however, concerns over rising inflation indicate that the rate hike will be bigger again ahead.

This week, Eurozone Retail Sales data will be keenly watched. The economic data may remain in a negative trajectory at -1.3% but will improve against a prior figure of -2.0%.

Technical Levels: Supports and Resistances

EURUSD currently trading at 0.8774 at the time of writing. Pair opened at 0.876 and is trading with a change of 0.16 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 0.8693, 50 SMA 0.8714, 100 SMA @ 0.86 and 200 SMA @ 0.851.

The previous day high was 0.8785 while the previous day low was 0.87. The daily 38.2% Fib levels comes at 0.8753, expected to provide support. Similarly, the daily 61.8% fib level is at 0.8732, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.8712, 0.8663, 0.8626
• Pivot resistance is noted at 0.8797, 0.8834, 0.8883

[/s2If]
Join Our Telegram Group