#EURGBP @ 0.85959 is juggling around 0.8600 as the focus has shifted to Eurozone Inflation data. (Pivot Orderbook analysis)

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• EUR/GBP is juggling around 0.8600 as the focus has shifted to Eurozone Inflation data.
• ECB’s Lane claimed wages as the primary driver of inflation for the coming years.
• Investors await UK PM Sunak’s first major foreign policy speech.

The pair currently trades last at 0.85959.

The previous day high was 0.8617 while the previous day low was 0.8577. The daily 38.2% Fib levels comes at 0.8601, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.8592, expected to provide support.

The EUR/GBP pair is displaying back-and-forth moves in a narrow range around the 0.8600 figure in the Tokyo session. The asset has turned sideways as investors are awaiting the release of the Eurozone inflation data for further guidance, which will release on Wednesday.

The asset is in a rangebound mode for the past week amid the unavailability of potential triggers. Now, the release of the preliminary Eurozone Harmonized Index of Consumer Prices (HICP) will ease obscurity. As per the consensus, the headline HICP will decline to 10.4% vs. the prior release of 10.6%. While the core HICP data that excludes oil and food prices is seen unchanged at 5%.

European Central Bank (ECB) Chief Economist Philip Lane said on Friday, “Wages will be the primary driver of inflation over the coming years.” An adjustment in nominal wages due to a cumulative increment in the cost of living will play out for several years. A time will arise when inflationary pressures will cool down but accelerated nominal wages will sustain, which would lead to a robust demand culture.

Apart from that, investors await more development on the European gas price cap structure. Intercontinental Exchange (ICE) has warned that the finalization of the ceiling on European gas would force energy traders to stump up an additional $33 bln in margin payments, as reported by Financial Times. Such a large increase in margin requirements could “destabilize the market”,

On the United Kingdom front, investors are shifting their focus towards the first major foreign policy speech from UK Prime Minister Rishi Sunak, which he plans to deliver on Monday in London’s financial district.

A report from Natixis on UK Pound citing “Sterling’s reserve currency role is under threat has spooked investors. According to the report, the Sterling is a major reserve currency, accounting for 5% of global foreign exchange reserves while the United Kingdom accounts for only 3% of global GDP.

Technical Levels: Supports and Resistances

EURGBP currently trading at 0.8601 at the time of writing. Pair opened at 0.8606 and is trading with a change of -0.06 % .

The pair is trading below its 20 Daily moving average @ 0.8693, below its 50 Daily moving average @ 0.8729 , below its 100 Daily moving average @ 0.8618 and above its 200 Daily moving average @ 0.8534

The previous day high was 0.8617 while the previous day low was 0.8577. The daily 38.2% Fib levels comes at 0.8601, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.8592, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.8583, 0.856, 0.8543
• Pivot resistance is noted at 0.8623, 0.864, 0.8663

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