The EURGBP pair is experiencing limited movement at a price of 0.85193, as it awaits the publication of PMI data from both economies.
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- EUR/GBP trades sideways ahead of the releases of PMIs data from both economies.
The pair currently trades last at 0.85193.
The previous day high was 0.8546 while the previous day low was 0.8514. The daily 38.2% Fib levels comes at 0.8526, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.8533, expected to provide resistance.
EUR/GBP struggle to hold ground from the previous day’s losses, trading around 0.8520 during the Asian session on Wednesday. The EUR/GBP downward trajectory is further driven by the possibility of further interest rate hikes by the Bank of England (BoE).
Market participants also look to the UK economic docket, featuring preliminary S&P Global/CIPS Composite PMIs for August, scheduled to release on Wednesday. These events are expected to provide valuable perspectives on the trajectories of both economies. As a result, they could have a significant impact on trading decisions concerning the EUR/GBP pair.
The United Kingdom’s (UK) wage growth served as a supporting factor for the Pound Sterling, potentially capping the gains of the EUR/GBP pair. This raises concerns about long-term inflation, supporting the chance of a 25 basis points (bps) rate hike in the September meeting by the BoE. Additionally, the robust UK GDP and moderate UK CPI figures support the likelihood of further policy tightening.
The Euro traders turn cautious ahead of the upcoming data release of preliminary HCOB PMIs from the Eurozone and Germany later in the day. However, an Upbeat mood and a soft US Dollar (USD) coupled with declining US Treasury bond yields underpin the Euro. China’s economic woes are exerting pressure on the Euro but any signs of further indication on fiscal stimulus could be supportive.
Technical Levels: Supports and Resistances
EURGBP currently trading at 0.8519 at the time of writing. Pair opened at 0.8518 and is trading with a change of 0.01 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 0.8519 |
| 1 | Today Daily Change | 0.0001 |
| 2 | Today Daily Change % | 0.0100 |
| 3 | Today daily open | 0.8518 |
The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.8586, 50 SMA 0.8583, 100 SMA @ 0.8653 and 200 SMA @ 0.8717.
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 0.8586 |
| 1 | Daily SMA50 | 0.8583 |
| 2 | Daily SMA100 | 0.8653 |
| 3 | Daily SMA200 | 0.8717 |
The previous day high was 0.8546 while the previous day low was 0.8514. The daily 38.2% Fib levels comes at 0.8526, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.8533, expected to provide resistance.
Note the levels of interest below:
- Pivot support is noted at 0.8506, 0.8494, 0.8474
- Pivot resistance is noted at 0.8538, 0.8558, 0.857
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 0.8546 |
| Previous Daily Low | 0.8514 |
| Previous Weekly High | 0.8633 |
| Previous Weekly Low | 0.8524 |
| Previous Monthly High | 0.8701 |
| Previous Monthly Low | 0.8504 |
| Daily Fibonacci 38.2% | 0.8526 |
| Daily Fibonacci 61.8% | 0.8533 |
| Daily Pivot Point S1 | 0.8506 |
| Daily Pivot Point S2 | 0.8494 |
| Daily Pivot Point S3 | 0.8474 |
| Daily Pivot Point R1 | 0.8538 |
| Daily Pivot Point R2 | 0.8558 |
| Daily Pivot Point R3 | 0.8570 |
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