Bulls pause and rest at the weekly high of #EURGBP at 0.86045, following a strong two-week upward movement the day before.

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• EUR/GBP bulls take a breather at weekly top after rising the most in fortnight the previous day.

The pair currently trades last at 0.86045.

The previous day high was 0.8607 while the previous day low was 0.855. The daily 38.2% Fib levels comes at 0.8585, expected to provide support. Similarly, the daily 61.8% fib level is at 0.8572, expected to provide support.

EUR/GBP struggles to remain firmer around the 0.8600 round figure heading into Wednesday’s London open. That said, the cross-currency pair ignored mixed Eurozone data while justifying the UK’s economic fears to post the biggest daily jump in two weeks the previous day.

That said, the last week’s downbeat prints of the UK’s inflation data allow the Bank of England (BoE) hawks as they struggle to tame the heavy inflation amid downbeat economic activities and workforce problems at home. Also challenging the British Pound (GBP) is the latest disappointment for the ruling Tory Party, as Rishi Sunak’s team lost some of the key seats in the by-elections.

On the other hand, the German Unemployment Rate eased to 5.6% for June versus 5.7% expected and prior whereas the final prints of HCOB Manufacturing PMI for July confirmed a 38.8 figure. On the same line, the last readings of Eurozone HCOB Manufacturing also matched initial forecasts of 42.7.

It should be noted that the European Central Bank’s (ECB) “meeting-by-meeting” approach while announcing a 0.25% rate hike in the last week prod the EUR/GBP bulls.

Above all, the market’s cautious mood ahead of the BoE Monetary Policy Meeting, up for release on Thursday, challenges the pair traders amid mixed feelings even if the UK central bank is likely to announce a 0.25% rate hike. In a case where the “Old Lady”, as the BoE is casually termed, pauses the rate increase or sounds dovish, the EUR/GBP will have further upside to trace.

Although a clear upside break of 50-DMA, around 0.8590 by the press time, keeps the EUR/GBP buyers hopeful, a downward-sloping resistance line from late April, close to .8630 at the latest, challenges the bulls before giving them control.

Technical Levels: Supports and Resistances

EURGBP currently trading at 0.8608 at the time of writing. Pair opened at 0.8598 and is trading with a change of 0.12% % .

The pair is trading above its 20 Daily moving average @ 0.8582, above its 50 Daily moving average @ 0.8592 , below its 100 Daily moving average @ 0.8683 and below its 200 Daily moving average @ 0.8725

The previous day high was 0.8607 while the previous day low was 0.855. The daily 38.2% Fib levels comes at 0.8585, expected to provide support. Similarly, the daily 61.8% fib level is at 0.8572, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.8563, 0.8529, 0.8507
• Pivot resistance is noted at 0.8619, 0.8641, 0.8676

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