The EURGBP currency pair has continued to decline at a rate of 0.85422 due to positive UK inflation data exceeding expectations.

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• EUR/GBP extends its losses due to better-than-expected UK inflation figures.

The pair currently trades last at 0.85422.

The previous day high was 0.8593 while the previous day low was 0.8544. The daily 38.2% Fib levels comes at 0.8563, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.8575, expected to provide resistance.

EUR/GBP continues to experience losses, currently trading near the monthly low at 0.8540 during the Asian session on Thursday. The EUR/GBP downward trajectory is further driven by better-than-expected inflation figures originating from the United Kingdom (UK) on Wednesday.

UK’s economic indicators are potentially intensifying worries about the likelihood of interest rate hikes by the Bank of England (BoE) during the September meeting. That said, the UK Consumer Price Index (CPI) for the month of July registered a figure of -0.4%, which was slightly better than the projected -0.5% and a decrease from the previous 0.1%. On an annual basis, the CPI demonstrated a reading of 6.8%, consistent with expectations and a slight decrease from the prior 7.9%. Furthermore, the Core CPI, which excludes volatile items, remained steady at a rate of 6.9%, aligning with the anticipated 6.8%.

On the other hand, the Eurozone released top-tier data on Wednesday, revealing moderate numbers. The Gross Domestic Product (GDP) seasonally adjusted (s.a.) matched expectations, with the report displaying unchanged numbers. The GDP (quarter-on-quarter) and (year-on-year) held steady at 0.3% and 0.6%, respectively. Additionally, Europe witnessed a decline in Employment Change to the projected 0.2% during the second quarter, following the previous quarter’s reading of 0.6%. This dataset did not contribute to stemming the Euro’s weakness against the Cable.

The market participants will closely watch the upcoming data release from Eurozone Trade Balance later in the day, following the Harmonized Index of Consumer Prices (HICP) scheduled to release on Friday. Friday will also witness the scheduled speech by Chief Economist Philip Richard Lane from European Central Bank (ECB) and UK Retail Sales. These event releases are expected to offer valuable insights into the economic outlook of both countries, potentially influencing trading decisions involving the EUR/GBP pair.

Market participants will closely monitor the forthcoming data releases, beginning with the Eurozone Trade Balance later in the day, followed by the Harmonized Index of Consumer Prices (HICP) scheduled for release on Friday. Additionally, Friday’s agenda includes a speech by Chief Economist Philip Richard Lane from the European Central Bank (ECB) and UK Retail Sales data. These events are anticipated to provide valuable perspectives on the economic trajectories of both countries. As a result, they could have a significant impact on trading decisions concerning the EUR/GBP pair.

Technical Levels: Supports and Resistances

EURGBP currently trading at 0.8545 at the time of writing. Pair opened at 0.8546 and is trading with a change of -0.01 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.8604, 50 SMA 0.8586, 100 SMA @ 0.8663 and 200 SMA @ 0.8721.

The previous day high was 0.8593 while the previous day low was 0.8544. The daily 38.2% Fib levels comes at 0.8563, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.8575, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.8529, 0.8512, 0.848
• Pivot resistance is noted at 0.8578, 0.861, 0.8626

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