EUR/GBP clings to gains near session tops, around 0.8470-75 area


  • EUR/GBP staged a modest rebound on Thursday from the vicinity of YTD lows.
  • Mixed UK economic data undermined the sterling and provided a modest boost.
  • The upside seems limited, warranting some caution for aggressive bullish traders.

The EUR/GBP cross managed to rebound around 25 pips from daily swing lows and was last seen hovering near the top end of its intraday trading range, around the 0.8475 region.

Following the previous day's two-way price moves and an early dip to mid-0.8400s, the EUR/GBP cross found some support ahead of the lowest level since February 2020 touched earlier this week. The British pound's relative underperformance could be attributed to an unexpected jump in the UK trade deficit, to £11.988 billion in June from £9.601 billion.

Adding to this, the UK Office for National Statistics lowered its estimate for the domestic GDP growth in May to 0.6% from an originally reported 0.8% increase. This, to a larger extent, offset better-than-anticipated UK GDP growth figures for the reported month. In fact, Britain's economy grew by a faster-than-expected 1% in June against 0.8% anticipated.

That said, the optimism over the declining trend of new COVID-19 cases and the BoE's hints about modest tightening continued acting as a tailwind for the sterling. This, along with a subdued action around the shared currency, might hold traders from placing any aggressive bets around the EUR/GBP cross and keep a lid on any further gains.

Hence, it will be prudent to wait for some strong follow-through buying before confirming that the EUR/GBP cross has bottomed out in the near term and positioning for any meaningful upside.

Technical levels to watch

EUR/GBP

Overview
Today last price 0.8475
Today Daily Change 0.0010
Today Daily Change % 0.12
Today daily open 0.8465
 
Trends
Daily SMA20 0.8536
Daily SMA50 0.856
Daily SMA100 0.8593
Daily SMA200 0.8728
 
Levels
Previous Daily High 0.8484
Previous Daily Low 0.8461
Previous Weekly High 0.8558
Previous Weekly Low 0.847
Previous Monthly High 0.867
Previous Monthly Low 0.85
Daily Fibonacci 38.2% 0.847
Daily Fibonacci 61.8% 0.8475
Daily Pivot Point S1 0.8456
Daily Pivot Point S2 0.8447
Daily Pivot Point S3 0.8434
Daily Pivot Point R1 0.8479
Daily Pivot Point R2 0.8493
Daily Pivot Point R3 0.8502

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD hovers around 1.1150 ahead of German GDP, US inflation

EUR/USD is trading around 1.1150, attempting a bounce from 119-months lows of 1.1132. The US dollar eases from multi-month highs amid a return of risk appetite and firmer Treasury yields. US advance Q4 GDP beat estimates with 6.9% YoY. German Prelim GDP and US PCE inflation awaited.

EUR/USD News

GBP/USD regains 1.3400 on Brexit optimism, US PCE eyed

GBP/USD is extending its rebound from five-week lows above 1.3400 amid an upbeat mood. UK Foreign Secretary Liz Truss eyes significant progress in Brexit talks by February. Report over UK PM Johnson’s future leadership deferred. US PCE inflation in focus. 

GBP/USD News

Gold rebounds ahead of US PCE inflation, not out of the woods yet Premium

Gold price attempts a bounce as the US dollar retreats ahead of US PCE inflation. After Wednesday’s $40 sell-off, gold price tumbled another $23 on Thursday, as bulls finally surrendered the $1,800 area to hit the lowest level in two weeks at $1,792. 

Gold News

Why Bitcoin has entered a new bear market

Bitcoin price has tumbled to a multi-month low below $33,000, as the leading cryptocurrency loses 50% of its value from its all-time high in November 2021. This marks the second-worst sell-off since the bear market that spanned from 2018 to 2020. 

Read more

US PCE Inflation Preview: Dollar rally has more legs to run Premium

Annual Core PCE inflation is forecast to rise to 4.8% in December from 4.7%. US Dollar Index surged to its highest level in more than a year on Fed's hawkish outlook.  Dollar is likely to continue to outperform its rivals in the near term.

Read more

Forex MAJORS

Cryptocurrencies

Signatures