EUR/GBP consolidates in a range around 0.8600 mark


  • EUR/GBP witnessed some selling after the BoE Haldane's hawkish comments.
  • COVID-19 jitters, Brexit woes capped gains for the GBP and helped limit losses.
  • Investors also seemed reluctant ahead of the ECB policy meeting on Thursday.

The EUR/GBP cross lacked any firm directional bias and seesawed between tepid gains/minor losses, around the 0.8600 mark through the first half of the European session.

A combination of diverging forces failed to provide any meaningful impetus to the EUR/GBP cross and led to a subdued/range-bound price action on Wednesday. The EUR/GBP cross witness some selling and moved further away from four-day tops touched in the previous session in reaction to the Bank of England Chief Economist Andy Haldane's hawkish comments.

Haldane noted that the UK economy is going gang-busters and there may be the need to start turning off the stimulus tap. He said that the UK needs not to become too dependent on monetary medicine and is already seeing some pretty punchy pressures on prices. If pay and costs are picking up, inflation on the high street isn't very far behind, Haldane added further.

That said, the EU-UK collision over Norther Ireland protocol and talks that further easing of lockdown measures in the UK may be postponed continued acting as a headwind for the British pound. Apart from this, a modest uptick in the shared currency – amid a subdued US dollar price action – helped limit the downside for the EUR/GBP cross, at least for now.

Investors also refrained from placing any aggressive bets, rather preferred to wait on the sidelines ahead of the upcoming European Central Bank meeting on Thursday. This makes it prudent to wait for some strong follow-through selling before traders start positioning for any further decline amid absent relevant market moving economic releases.

Technical levels to watch

EUR/GBP

Overview
Today last price 0.8597
Today Daily Change -0.0003
Today Daily Change % -0.03
Today daily open 0.86
 
Trends
Daily SMA20 0.8609
Daily SMA50 0.863
Daily SMA100 0.8658
Daily SMA200 0.8846
 
Levels
Previous Daily High 0.8627
Previous Daily Low 0.8594
Previous Weekly High 0.8646
Previous Weekly Low 0.8566
Previous Monthly High 0.8711
Previous Monthly Low 0.8561
Daily Fibonacci 38.2% 0.8615
Daily Fibonacci 61.8% 0.8607
Daily Pivot Point S1 0.8587
Daily Pivot Point S2 0.8574
Daily Pivot Point S3 0.8554
Daily Pivot Point R1 0.862
Daily Pivot Point R2 0.864
Daily Pivot Point R3 0.8653

 

 

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