The EURGBP currency pair, trading at a rate of 0.85834, is experiencing continued downward pressure and has been relatively quiet due to slow market activity.

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• EUR/GBP remains pressured, mostly inactive, after two-day downtrend amid sluggish markets.

The pair currently trades last at 0.85834.

The previous day high was 0.8618 while the previous day low was 0.8576. The daily 38.2% Fib levels comes at 0.8592, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.8602, expected to provide resistance.

EUR/GBP holds lower grounds near 0.8590 as it struggles for clear directions but the bears refrain from relinquishing control heading into Monday’s European session. In doing so, the cross-currency pair justifies a recently upbeat headline from the UK amid fears that the European Central Bank (ECB) has multiple challenges to defend the hawkish bias.

The UK Times came out with the news suggesting British Health Secretary Steve Barclay’s willingness to give doctors a bigger pay rise, calling for an end to consultant strikes to resume negotiations. “Barclay’s admission came as the head of the NHS (National Health Services) warned that the disruption to routine healthcare would become “more significant” this month,” said the news. It should be noted that the UK’s employment report appeared mixed and signaled an easing of the British labor crunch.

Elsewhere, the preliminary readings of Germany’s inflation per the Consumer Price Index (CPI) rose to 6.4% YoY in June from 6.1% in May and 6.3% expected. On the same line, the European Central Bank’s (ECB) favorite inflation gauge, namely the Harmonised Index of Consumer Prices (HICP), also jumped to 6.8% on a yearly basis from 6.3% prior and 6.7% market forecasts. Further, the preliminary Eurozone HICP inflation number rose to 0.3% MoM versus 0.0% expected and prior while the yearly figures eased to 5.5% from 5.6% market forecasts and 6.1% previous readings.

It’s worth noting that the European Central Bank (ECB) officials tried defending their rate hike bias but softer inflation data and looming fears of Germany’s recession restrict markets from believing in them, which in turn weigh on the EUR/GBP Price. Alternatively, the UK inflation numbers and the Bank of England (BoE) policymakers’ hawkish bias put a floor under the pair’s price.

Moving on, final readings of the June month PMIs from the Eurozone and the UK will be important to watch for clear directions of the EUR/GBP pair. Also important to watch are the central bankers’ comments and risk catalysts.

EUR/GBP extends pullback from the 50-day Exponential Moving Average (EMA), around 0.8645 by the press time, towards a fortnight-old rising support line near 0.8565. That said, the cross-currency pair’s further downside appears less impressive.

Technical Levels: Supports and Resistances

EURGBP currently trading at 0.8587 at the time of writing. Pair opened at 0.8592 and is trading with a change of -0.06% % .

The pair is trading above its 20 Daily moving average @ 0.8582, below its 50 Daily moving average @ 0.8664 , below its 100 Daily moving average @ 0.8741 and below its 200 Daily moving average @ 0.8745

The previous day high was 0.8618 while the previous day low was 0.8576. The daily 38.2% Fib levels comes at 0.8592, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.8602, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.8573, 0.8554, 0.8531
• Pivot resistance is noted at 0.8614, 0.8637, 0.8656

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