EUR/GBP bounces off weekly lows, retakes 0.9200 mark


  • EUR/GBP staged a modest rebound from weekly lows set on Wednesday.
  • No-deal Brexit fears undermined the sterling and remained supportive.
  • Investors might refrain from placing aggressive bets ahead of the BoE.

The EUR/GBP cross built on its steady rebound from weekly lows and was last seen trading near the top end of its daily range, just above the 0.9200 round-figure mark.

The cross managed to find some support near the 0.9170 region and for now, seems to have stalled its recent pullback from the vicinity of the 0.9300 mark, or near six-month tops touched last Friday. Growing market fears of a no-deal Brexit turned out to be a key factor behind the British pound's relative underperformance against its European counterpart.

The GBP bulls largely shrugged off Wednesday's release of better-than-expected UK consumer inflation figures for August. In fact, the headline CPI fell 0.4% in August, versus consensus estimates pointing to a reading of -0.6% and rose 0.2% on a yearly basis. Meanwhile, core CPI also bettered market expectations of 0.6% and decelerated to 0.9% YoY from 1.8% previous.

Meanwhile, a subdued price action around the shared currency failed to provide any meaningful impetus, with the GBP price dynamics acting as an exclusive driver of the pair's momentum. It will now be interesting to see if the EUR/GBP cross is able to capitalize on the positive move as investors might refrain from placing aggressive bets ahead of the BoE decision on Thursday.

From a technical perspective, this week's negative move could be attributed to some profit-taking after the recent strong rally of over 400 pips and might still be categorized as a corrective slide. Hence, any subsequent slide should be seen as a buying opportunity, which, in turn, should help limit any deeper losses.

Technical levels to watch

EUR/GBP

Overview
Today last price 0.9205
Today Daily Change 0.0014
Today Daily Change % 0.15
Today daily open 0.9191
 
Trends
Daily SMA20 0.9023
Daily SMA50 0.9034
Daily SMA100 0.8982
Daily SMA200 0.8808
 
Levels
Previous Daily High 0.9259
Previous Daily Low 0.9184
Previous Weekly High 0.9292
Previous Weekly Low 0.8929
Previous Monthly High 0.907
Previous Monthly Low 0.8909
Daily Fibonacci 38.2% 0.9212
Daily Fibonacci 61.8% 0.923
Daily Pivot Point S1 0.9164
Daily Pivot Point S2 0.9136
Daily Pivot Point S3 0.9088
Daily Pivot Point R1 0.9239
Daily Pivot Point R2 0.9287
Daily Pivot Point R3 0.9314

 

 

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