EUR/GBP holds steady above 0.8500 mark, traders eye German CPI for fresh impetus

EUR/GBP gained some positive traction on Monday, through lacked follow-through buying.
The recent hawkish remarks by the ECB policymakers continued lending support to the euro.
Rising bets for a jumbo BoE rate hike, a weaker USD benefitted sterling and capped the upside.

Haresh Menghani FXStreet

The EUR/GBP cross attracted some dip-buying near the 0.8485 region on the first day of a new week and reversed its modest losses recorded on Friday. The cross maintained its bid tone through the early European session and was last seen trading near the daily high, around the 0.8515 region.

The shared currency continued drawing support from the recent hawkish comments by the European Central Bank policymakers, hinting at a probable rate hike in July. On the other hand, the UK-EU impasse over the Northern Ireland protocol acted as a headwind for the British pound and offered additional support to the EUR/GBP cross.

That said, rising bets for a jumbo interest rate hike by the Bank of England, along with the prevalent US dollar selling bias, underpinned sterling and kept a lid on any further gains for the EUR/GBP cross. Investors also seemed reluctant to place aggressive directional bets ahead of the key European Union summit starting this Monday.

Apart from this, traders will take cues from the flash German consumer inflation figures, which might influence the euro and provide some meaningful impetus to the EUR/GBP cross. This makes it prudent to wait for strong follow-through buying before positioning for any further intraday appreciating move for the EUR/GBP cross.

Technical levels to watch

EUR/GBP

Overview
Today last price	0.8496
Today Daily Change	0.0000
Today Daily Change %	0.00
Today daily open	0.8496

Trends
Daily SMA20	0.8497
Daily SMA50	0.8416
Daily SMA100	0.8389
Daily SMA200	0.8445

Levels
Previous Daily High	0.8523
Previous Daily Low	0.8481
Previous Weekly High	0.8587
Previous Weekly Low	0.8433
Previous Monthly High	0.8467
Previous Monthly Low	0.825
Daily Fibonacci 38.2%	0.8497
Daily Fibonacci 61.8%	0.8507
Daily Pivot Point S1	0.8477
Daily Pivot Point S2	0.8458
Daily Pivot Point S3	0.8436
Daily Pivot Point R1	0.8518
Daily Pivot Point R2	0.8541
Daily Pivot Point R3	0.856

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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