• EUR/GBP attracts some dip-buying on Monday, though the uptick lacks follow-through.
  • The BoE’s gloomy economic outlook is behind the GBP’s relative underperformance.
  • Recession fears act as a headwind for the euro and kept a lid on any meaningful gains.

The EUR/GBP cross attracts some dip-buying near the 0.8415 region and turns positive for the fourth successive day on Monday. Spot prices refresh daily highs during the early European session, though seem to struggle to capitalize on the move beyond the very important 200-day SMA around the 0.8435-0.8440 zone.

The Bank of England painted a particularly bleak outlook for the UK economy last week, and indicated that a prolonged recession would start in the fourth quarter. This is seen as a key factor behind the British pound's relative underperformance and is lending some support to the EUR/GBP cross, though the uptick lacks bullish conviction.

Investors remain worried that a halt of gas flows from Russia could trigger an energy crisis in the Eurozone, which could drag the region's economy faster and deeper into recession itself. This might continue to act as a headwind for the shared currency and keep a lid on any meaningful upside for the EUR/GBP cross, warranting caution for bulls.

On the economic data front, the Eurozone Sentix Investor Confidence index improved slightly from -26.4 in July to -25.2 in August. Furthermore, the current situation was up slightly at -16.3 in August from the -16.5 previous and the Expectations Index came in at -33.8. This, however, did little to impress bulls or provide any impetus to the EUR/GBP cross.

The mixed fundamental backdrops make it prudent to wait for strong follow-through buying before confirming that the EUR/GBP cross has formed a base near the 0.8340 region, or a multi-month low touched on August 3.

Technical levels to watch


Today last price 0.8434
Today Daily Change 0.0005
Today Daily Change % 0.06
Today daily open 0.8429
Daily SMA20 0.8445
Daily SMA50 0.8518
Daily SMA100 0.8467
Daily SMA200 0.8442
Previous Daily High 0.8453
Previous Daily Low 0.8423
Previous Weekly High 0.8453
Previous Weekly Low 0.834
Previous Monthly High 0.8679
Previous Monthly Low 0.8346
Daily Fibonacci 38.2% 0.8442
Daily Fibonacci 61.8% 0.8434
Daily Pivot Point S1 0.8417
Daily Pivot Point S2 0.8405
Daily Pivot Point S3 0.8387
Daily Pivot Point R1 0.8447
Daily Pivot Point R2 0.8465
Daily Pivot Point R3 0.8477



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 Join Telegram

Recommended content

Recommended content

Editors’ Picks

AUD/USD struggling around 0.6400 and at risk of piercing the year’s low

AUD/USD struggling around 0.6400 and at risk of piercing the year’s low

Disappointing Australian data and a deteriorated market mood weighed on AUD/USD, quickly approaching the 2022 low at 0.6362. RBA’s Financial Stability report coming up next.


EUR/USD extends decline sub-0.9800 as risk aversion intensifies

EUR/USD extends decline sub-0.9800 as risk aversion intensifies

The American dollar maintains a strong upward momentum amid renewed inflation and recession concerns. EUR/USD further retreated after failing to regain parity mid-week.


Gold struggling to retain its bullish strength

Gold struggling to retain its bullish strength

XAUUSD shed some ground on Thursday, currently hovering around $1,713.00. The dollar has gathered momentum as Wall Street opened in the red, holding into negative territory at the time. Also, government bond yields resumed their advances and hold near fresh weekly highs.

Gold News

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: The next move could surprise us all

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: The next move could surprise us all

The crypto market displays mixed signals but hints that the bearish trend is not over yet. Adopting a get-in-get-out mentality may be the more favorable approach for investors looking to expose themselves to the market.

Read more

US September NFP Preview: Analyzing gold's reaction to NFP surprises Premium

US September NFP Preview: Analyzing gold's reaction to NFP surprises

Historically, how impactful has the US jobs report been on gold’s valuation? In this article, we present results from a study in which we analyzed the XAUUSD pair's reaction to the previous 26 NFP prints.

Read more