#EURGBP @ 0.86085 edges lower on Tuesday, albeit manages to hold above the 0.8600 mark. (Pivot Orderbook analysis)

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for FREE REGISTER to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level1)]

• EUR/GBP edges lower on Tuesday, albeit manages to hold above the 0.8600 mark.
• Expectations for additional ECB rate hikes underpin the Euro and offer support.
• The fundamental backdrop warrants some caution for aggressive bullish traders.

The pair currently trades last at 0.86085.

The previous day high was 0.8636 while the previous day low was 0.8595. The daily 38.2% Fib levels comes at 0.862, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.8611, expected to provide resistance.

The EUR/GBP cross attracts some intraday sellers near the 0.8625 region, albeit lacks any follow-through and manages to hold above the 0.8600 mark through the mid-European session.

The shared currency continues to draw support from rising bets for additional interest rate hikes by the European Central Bank (ECB), which, in turn, is seen as a key factor acting as a tailwind for the EUR/GBP cross. Against the backdrop of the recent hawkish comments by several ECB officials, President Christine Lagarde indicated on Monday that additional interest rate rises were likely as there is no clear evidence that underlying inflation has peaked.

This, in turn, reaffirms expectations that the central bank is not done raising rates despite a fall in inflationary pressures. It is worth recalling that the headline Eurozone CPI decelerated more than anticipated to the 6.1% YoY rate in May from 7.0% previous. Moreover, Core CPI slowed from 5.6% YoY to 5.3% last month. That said, resurgent US Dollar (USD) demand is weighing on the Euro and exerting some pressure on the EUR/GBP cross.

Furthermore, speculations that the Bank of England (BoE) will be far more aggressive in policy tightening to contain stubbornly high inflation further contributes to capping the upside for the EUR/GBP cross. This, in turn, makes it prudent to wait for strong follow-through buying before confirming that spot prices have formed a near-term bottom and positioning for any meaningful recovery from a fresh YTD low, around the 0.8565 region touched last week.

Technical Levels: Supports and Resistances

EURGBP currently trading at 0.8607 at the time of writing. Pair opened at 0.8613 and is trading with a change of -0.07 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.867, 50 SMA 0.8747, 100 SMA @ 0.8789 and 200 SMA @ 0.8756.

The previous day high was 0.8636 while the previous day low was 0.8595. The daily 38.2% Fib levels comes at 0.862, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.8611, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.8593, 0.8573, 0.8552
• Pivot resistance is noted at 0.8635, 0.8656, 0.8676

[/s2If]
Nehcap Expert Advisor
The NEHCAP MT4 EA is high quality professional trading system geared to generate returns without using GRID or martingales. Each trade has strict risk per trade parameter. The pairs under management include EURUSD, GBPUSD, AUDCAD, AUDNZD,GBPAUD, EURAUD, EURCAD, CHFJPY and many more.
The system is trading live: LIVE ACCOUNT TRACKING
You can run it free. Apply for a free trial and track our account. Buy the system or use profit share mechanism to generate returns on your MT4.
Join Our Telegram Group