#EURGBP @ 0.88048 is oscillating above 0.8800 as investors await Eurozone HICP and UK GDP for fresh impetus. (Pivot Orderbook analysis)

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• EUR/GBP is oscillating above 0.8800 as investors await Eurozone HICP and UK GDP for fresh impetus.
• Eurozone headline inflation to soften due to lower energy prices while the core figure could elevate.
• The street is split about BoE’s monetary policy outlook as more rate hikes would deepen recession fears.

The pair currently trades last at 0.88048.

The previous day high was 0.8828 while the previous day low was 0.878. The daily 38.2% Fib levels comes at 0.8798, expected to provide support. Similarly, the daily 61.8% fib level is at 0.881, expected to provide resistance.

The EUR/GBP pair is delivering a lackluster performance as investors have sidelined ahead of the release of the Eurozone Harmonized Index of Consumer Prices (HICP) and the United Kingdom’s Gross Domestic Product (GDP) data.

The release of the German HICP data on Thursday indicates that headline figures could soften dramatically as energy prices have dropped firmly. However, a shortage of labor and eventually shifting of bargaining power in hands of job seekers would keep core figures firmer. Reuters reported that due to a shortage of job seekers and wage growth is now between 5% and 6%, the highest in decades. This might force the European Central Bank (ECB) to continue to hike rates further in order to achieve price stability.

According to the consensus, Eurozone’s preliminary headline HICP (March) would soften to 7.1% from the former release of 8.5%. Contrary to that, core HICP is expected to escalate to 5.7% vs. the prior release of 5.6%.

Apart from that, German Retail Sales (Feb) data will be keenly watched. Monthly retail demand is expected to expand by 0.5% against a contraction of 0.3%. An expansion in retail demand might bolster the chances of more rate hike announcements from ECB President Christine Lagarde.

On the UK front, investors are awaiting the GDP (Q4) data. As per the consensus, UK’s growth has remained stagnant in the fourth quarter of CY2022. Annual GDP is expected to remain steady at 0.4%.

Meanwhile, UK inflation is expected to remain elevated as shop price inflation is accelerating led by high food inflation. The street is split about the Bank of England’s (BoE) monetary policy outlook as investors are worried that more rate hikes would deepen recession fears or inflation would remain elevated if the policy remained unchanged.

Technical Levels: Supports and Resistances

EURGBP currently trading at 0.8803 at the time of writing. Pair opened at 0.8804 and is trading with a change of -0.01 % .

The pair is trading below its 20 Daily moving average @ 0.882, below its 50 Daily moving average @ 0.8833 , above its 100 Daily moving average @ 0.8781 and above its 200 Daily moving average @ 0.8693

The previous day high was 0.8828 while the previous day low was 0.878. The daily 38.2% Fib levels comes at 0.8798, expected to provide support. Similarly, the daily 61.8% fib level is at 0.881, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.878, 0.8755, 0.8731
• Pivot resistance is noted at 0.8828, 0.8853, 0.8877

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