#EURGBP @ 0.86934 extends losses after downbeat Eurozone economic figures.

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• EUR/GBP extends losses after downbeat Eurozone economic figures.

The pair currently trades last at 0.86934.

The previous day high was 0.8754 while the previous day low was 0.8701. The daily 38.2% Fib levels comes at 0.8721, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.8734, expected to provide resistance.

EUR/GBP continues the losing streak post retreating from the five-month high, trading lower around 0.8690 during the early European session on Wednesday. The EUR/GBP cross faces downward pressure as the Eurostat released the weaker-than-expected consumer inflation data on Tuesday.

The Eurozone report showed that the preliminary Harmonized Index of Consumer Prices (YoY) for October, reduced to 2.9% from 4.3% prior, below the market anticipations of 3.1%. The seasonally adjusted Gross Domestic Products (YoY) came in at 0.1% in Q3 compared to the 0.2% expected.

The significant slowdown in consumer prices aligns with the market’s anticipation that the European Central Bank (ECB) is unlikely to push for additional interest rate hikes. Moreover, the looming risks of a recession may continue to undermine the Euro (EUR), influencing the EUR/GBP cross.

However, European Central Bank (ECB) officials maintain the possibility of further tightening. Member of the ECB Governing Council Joachim Nagel said, “Our tight monetary policy is working, but we must not let up too soon.” According to him, rates should remain at a sufficiently high level for an extended period.

On the other side, the Pound Sterling (GBP) could face challenges in the near term as investors lean towards the belief that the Bank of England (BoE) will maintain interest rates at 5.25% in Thursday’s meeting, driven by concerns about a potential slowdown in the UK economy.

Investors are keen on receiving guidance regarding future interest rates and the inflation outlook. United Kingdom (UK) Prime Minister Rishi Sunak pledged in January to halve inflation to 5.4% by year-end, a commitment that appears challenging as annual price growth stood at 6.7% in September.

Technical Levels: Supports and Resistances

EURGBP currently trading at 0.8692 at the time of writing. Pair opened at 0.8702 and is trading with a change of -0.11 % .

The pair is trading above its 20 Daily moving average @ 0.8679, above its 50 Daily moving average @ 0.8638 , above its 100 Daily moving average @ 0.861 and below its 200 Daily moving average @ 0.8694

The previous day high was 0.8754 while the previous day low was 0.8701. The daily 38.2% Fib levels comes at 0.8721, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.8734, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.8684, 0.8666, 0.8631
• Pivot resistance is noted at 0.8738, 0.8772, 0.8791

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