EUR/GBP loses the 20-day SMA ahead of key British economic data

EUR/GBP declined for a second consecutive day, and fell towards 0.8605, below the 20-day SMA.
All eyes are now on labour market and inflation data from the UK.
The Eurozone will release its preliminary Q2 GDP report on Wednesday.

Patricio Martín FXStreet

At the start of the week, the EUR/GBP fell below the 20-day Simple Moving Average (SMA) near the 0.8605 area. No relevant data releases will feature on Monday’s economic calendar as attention shifts fo high-tier data released from both blocks later in the week.

On the GBP’s side, on Tuesday, the Office for National Statistics (ONS) will release key labour market data, including earning figures from the three months up to June and Claimant Counts numbers from July. In addition, on Wednesday, inflation data will be released from July, and overall figures are expected to show a robust labour market and decelerating inflation. Its worth noticing that the Bank of England (BoE) no longer expects a recession but that the bank will do whatever it takes to bring down inflation, so the outcome of the data will likely shape the expectations of the BoE’s next decision and hence having an impact on the Pound’s price dynamics.

On the European side, markets await Gross Domestic Product (GDP) preliminary figures for Q2 from the Eurozone, which is expected to have stagnated, and the Harmonized Index of Consumer Prices (HIICP) from July, which will be released on Friday.

EUR/GBP Levels to watch

The daily chart suggests that a neutral to bearish trend becomes evident for EUR/GBP, with the bears gradually taking control. The Relative Strength Index (RSI) has a negative slope above its midline, indicating weakening buying pressure, while the Moving Average Convergence (MACD) prints decreasing green bars. In addition, the pair is below the 20,100 and 200-day Simple Moving Average (SMA), pointing towards the prevailing strength of the bears in the larger context.

Support levels: 0.8600, 0.8590, 0.8570.

Resistance levels: 0.8610 (20-day SMA), 0.8630, 0.8650.

EUR/GBP Daily chart

EUR/GBP

Overview
Today last price	0.8602
Today Daily Change	-0.0023
Today Daily Change %	-0.27
Today daily open	0.8625

Trends
Daily SMA20	0.8611
Daily SMA50	0.8588
Daily SMA100	0.8669
Daily SMA200	0.8724

Levels
Previous Daily High	0.8669
Previous Daily Low	0.8618
Previous Weekly High	0.8669
Previous Weekly Low	0.859
Previous Monthly High	0.8701
Previous Monthly Low	0.8504
Daily Fibonacci 38.2%	0.8638
Daily Fibonacci 61.8%	0.865
Daily Pivot Point S1	0.8606
Daily Pivot Point S2	0.8587
Daily Pivot Point S3	0.8555
Daily Pivot Point R1	0.8657
Daily Pivot Point R2	0.8688
Daily Pivot Point R3	0.8707

Author

Patricio Martín

FXStreet

Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.

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