#EURGBP @ 0.88279 remains sidelined after snapping four-day downtrend with bounce off two-week low. (Pivot Orderbook analysis)

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• EUR/GBP remains sidelined after snapping four-day downtrend with bounce off two-week low.
• GBP retreat amid mixed UK employment report, hopes of lucrative British budget.
• Investment zones are the key incentive in the new government’s annual buget.
• Eurozone Industrial Production for January, risk catalysts are also important for clear directions.

The pair currently trades last at 0.88279.

The previous day high was 0.8864 while the previous day low was 0.8799. The daily 38.2% Fib levels comes at 0.8824, expected to provide support. Similarly, the daily 61.8% fib level is at 0.8839, expected to provide resistance.

EUR/GBP treads water around 0.8830, following a rebound from a fortnight low to snap the four-day downtrend, as traders await the key UK Budget Report for fresh impulse. It should be noted that the latest catalysts from Britain haven’t been too impressive, which in turn lure the British Pound (GBP) bears as the key event looms.

That said, UK’s headline ILO Unemployment Rate reprinted 3.7% for three months to January versus 3.8% expected whereas the Claimant Count Change improved to -11.2K in February from -30.3K (revised) prior and -12.4K market forecasts. Further details suggest that the Average Earnings Including Bonus matched 5.7% analysts’ estimations for three months to January, versus an upwardly revised 6.0% prior, whereas the ex-Bonus figures came in as 6.5% compared to 6.6% expected and 6.7% previous readings.

Following the UK data, the odds of the Bank of England’s (BoE) easy rate hikes, or policy pivot, gained attention. “Growth in pay in Britain – which the Bank of England is watching closely as it weighs up whether to pause its run of interest rate hikes next week – lost pace in the three months to January, official data showed on Tuesday,” said Reuters.

On the other hand, European Central Bank (ECB) policymaker Yannis Stournaras said, during an interview with a Greek newspaper, that he doesn’t see any impact from the collapse of Silicon Valley Bank (SVB) on Eurozone banks. Previously, Eurogroup’s President Paschal Donohoe mentioned, “Euro-area has very limited exposure to SVB.”

Apart from that, the fading Brexit optimism and comparatively more hawkish European Central Bank (ECB) policymakers, than the BoE, also probe the EUR/GBP bulls.

Looking ahead, the British government’s annual Budget Report and Eurozone Industrial Production for January, expected 0.4% MoM versus -1.1% prior, will be important for EUR/GBP traders to watch for clear directions. Apart from that, the headlines surrounding the SVB and Russia could also entertain cross-currency pair traders.

Ahead of the UK Budget release, Reuters mentioned that the Guardian newspaper said UK Finance Minister Jeremy Hunt would announce a 4 billion-pound childcare expansion for one and two-year olds in England. The news also added that UK’s Hunt is also expected to announce measures to improve skills training and give a green light to 12 investment zones.

Despite bouncing off a two-month-old ascending support line, currently around 0.8800, the EUR/GBP bulls need validation from the 50-DMA hurdle of 0.8840 to retake control.

Technical Levels: Supports and Resistances

EURGBP currently trading at 0.8829 at the time of writing. Pair opened at 0.8809 and is trading with a change of 0.23% % .

The pair is trading below its 20 Daily moving average @ 0.885, below its 50 Daily moving average @ 0.8839 , above its 100 Daily moving average @ 0.8766 and above its 200 Daily moving average @ 0.8679

The previous day high was 0.8864 while the previous day low was 0.8799. The daily 38.2% Fib levels comes at 0.8824, expected to provide support. Similarly, the daily 61.8% fib level is at 0.8839, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.8784, 0.8759, 0.872
• Pivot resistance is noted at 0.8849, 0.8888, 0.8913

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