EUR/GBP keeps the red near session lows, around 0.9030-25 post-Eurozone CPI/GDP


  • EUR/GBP edged lower for the second straight day and drifted back closer to over one-week lows.
  • Friday’s Eurozone CPI print did little to impress the euro bulls or provide any impetus to the cross.
  • The sterling maintained its bid tone despite renewed lockdown measures in northwest England.

The EUR/GBP cross maintained its offered tone near daily lows, around the 0.9030-25 zone and had a rather muted reaction to the flash Eurozone CPI figures.

Following an early uptick to the 0.9060 region, the cross met with some fresh supply and turned lower for the second consecutive session on Friday. The downtick also marked the third day of a negative move in the previous four and dragged the EUR/GBP cross back closer to over one-week lows set in the previous session.

The British pound maintained its bid tone on the last trading day of the week and seemed rather unaffected by new restriction on 4.3 million people in northwest England. The UK government imposed a tougher lockdown in Greater Manchester, parts of West Yorkshire and East Lancashire after the recent rise in new coronavirus cases.

On the other hand, the shared currency witnessed some profit-taking amid a modest USD rebound from two-year lows. The euro bulls largely shrugged off Friday's release of the flash Eurozone consumer inflation figures, which showed that the headline CPI is expected to rise by +0.4% YoY in July from the 0.3% increase in the previous month.

Other data released this Friday showed that GDP across the euro area plunged by a record 12.1% QoQ during the second quarter of 2020. This, in turn, was seen as one of the key factors behind the common currency's relative underperformance against its British counterpart.

It will now be interesting to see if the cross continues to attract some dip-buying at lower levels or bears take out an important support near the key 0.9000 psychological mark. A convincing breakthrough will negate prospects for any near-term appreciating move, rather prompt some aggressive technical selling and pave the way for additional weakness.

Technical levels to watch

EUR/GBP

Overview
Today last price 0.9032
Today Daily Change -0.0015
Today Daily Change % -0.17
Today daily open 0.9047
 
Trends
Daily SMA20 0.9049
Daily SMA50 0.901
Daily SMA100 0.8942
Daily SMA200 0.8731
 
Levels
Previous Daily High 0.9079
Previous Daily Low 0.9017
Previous Weekly High 0.9138
Previous Weekly Low 0.9001
Previous Monthly High 0.9176
Previous Monthly Low 0.8864
Daily Fibonacci 38.2% 0.904
Daily Fibonacci 61.8% 0.9055
Daily Pivot Point S1 0.9016
Daily Pivot Point S2 0.8985
Daily Pivot Point S3 0.8954
Daily Pivot Point R1 0.9078
Daily Pivot Point R2 0.911
Daily Pivot Point R3 0.914

 

 

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