#EURGBP @ 0.87591 EURGBP gains some positive traction for the second straight day, though lacks any follow-through. (Pivot Orderbook analysis)

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• EURGBP gains some positive traction for the second straight day, though lacks any follow-through.
• A modest USD rebound is weighing on the common currency and acting as a headwind for the cross.
• Traders also seem reluctant ahead of this week’s UK macro data and Chancellor Hunt’s statement.

The pair currently trades last at 0.87591.

The previous day high was 0.8779 while the previous day low was 0.8704. The daily 38.2% Fib levels comes at 0.875, expected to provide support. Similarly, the daily 61.8% fib level is at 0.8733, expected to provide support.

The EURGBP cross edges higher for the second successive day on Monday and sticks to its modest intraday gains through the early European session. The cross is currently placed above the mid-0.8700s, though lacks any follow-through buying or bullish conviction.

The shared currency continues to draw some support from bets for a more aggressive policy tightening by the European Central Bank (ECB). The British Pound, on the other hand, is undermined by the gloomy outlook for the UK economy. In fact, the National Institute of Economic and Social Research (NIESR) expects the UK GDP growth to be flat in Q4 and noted that the risk of a contraction remains elevated. This, in turn, is seen lending some support to the EURGBP cross.

That said, the prospects for further interest rate hikes by the Bank of England act as a tailwind for the Sterling. Apart from this, a modest US Dollar recovery from a nearly three-month low exerts some pressure on the Euro and keeps a lid on any meaningful upside for the EURGBP cross, at least for now. Traders also seem reluctant to place aggressive bets ahead of this week’s important UK macro data – the monthly jobs report on Tuesday and the CPI report on Wednesday.

Investors will further take cues from the BoE’s Monetary Policy Report Hearings on Wednesday and Chancellor Jeremy Hunt’s Autumn Statement on Thursday. This will play a key role in influencing the near-term sentiment surrounding the GBP and determine the next leg of a directional move for the EURGBP cross. In the meantime, spot prices seem more likely to consolidate in a range amid absent relevant market-moving economic releases, either from the Eurozone or the UK.

Technical Levels: Supports and Resistances

EURGBP currently trading at 0.876 at the time of writing. Pair opened at 0.8745 and is trading with a change of 0.17 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 0.8693, 50 SMA 0.8727, 100 SMA @ 0.8607 and 200 SMA @ 0.8519.

The previous day high was 0.8779 while the previous day low was 0.8704. The daily 38.2% Fib levels comes at 0.875, expected to provide support. Similarly, the daily 61.8% fib level is at 0.8733, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.8706, 0.8668, 0.8632
• Pivot resistance is noted at 0.8781, 0.8817, 0.8855

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