EURGBP has sensed selling pressure while attempting a break above 0.8700. (Pivot Orderbook analysis)

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• EURGBP has sensed selling pressure while attempting a break above 0.8700.
• The ECB is expected to paddle up its policy tightening measures to bring the inflation rate to 2%.
• Eurozone Retail Sales data is seen at 1.3% vs. the prior release of -2.0%.

The pair currently trades last at 0.8692.

The previous day high was 0.8791 while the previous day low was 0.869. The daily 38.2% Fib levels comes at 0.8729, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.8753, expected to provide resistance.

The EURGBP pair is hovering around its intraday low after struggling to cross the immediate hurdle of 0.8700 in the Tokyo session. The cross witnessed a vertical fall on Monday after failing to hold itself above the ultimate resistance of 0.8780 as investors turned cautious ahead of Eurozone Retail Sales data.

Meanwhile, European Central Bank (ECB) President Christine Lagarde is continuously reiterating its view that the rate hike cycle must ensure that inflation should return to a projected 2% over the medium term. The inflation rate in the trading bloc has reached to double-digit figure and containment of the same won’t be a cakewalk. Also, Russia-Ukraine tensions and eventually rising energy prices have a headache for the ECB President.

In addition to that, ECB member Martins Kazaks has supported Lagarde’s viewpoint on inflation and has said ”there is no pivot, we still say that inflation is a problem, and we will keep raising rates.”

On the economic data front, the Eurozone Retail Sales data will be of utmost importance. The economic data may remain in a negative trajectory at -1.3% but will improve against prior figure of -2.0%. Despite, soaring price pressures, lower retail sales indicate an extreme weakness in retail demand.

Meanwhile, Pound investors are preparing for the Gross Domestic Product (GDP) data, which will release later this week. The GDP data on an annual basis is seen lower at 2.1% vs. the prior release of 4.4%. And, the quarterly regime is expected to display negative growth by 0.5% against an expansion of 0.2%.

Technical Levels: Supports and Resistances

EURUSD currently trading at 0.8692 at the time of writing. Pair opened at 0.8705 and is trading with a change of -0.15 % .

The pair is trading above its 20 Daily moving average @ 0.8689, below its 50 Daily moving average @ 0.8717 , above its 100 Daily moving average @ 0.8601 and above its 200 Daily moving average @ 0.8512

The previous day high was 0.8791 while the previous day low was 0.869. The daily 38.2% Fib levels comes at 0.8729, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.8753, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.8666, 0.8628, 0.8566
• Pivot resistance is noted at 0.8767, 0.8829, 0.8867

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