EUR/GBP on the defensive below mid-0.9100s, downside seems limited

  • EUR/GBP witnessed some profit-taking on Tuesday and retreated further from three-month tops.
  • The shared currency failed to gain any meaningful traction following the release of Eurozone CPI.
  • The sterling was pressured by a combination of factors and helped limit the downside for the cross.

The EUR/GBP cross maintained its offered tone through the mid-European session and refreshed daily lows, around the 0.9115-20 region in the last hour, albeit lacked follow-through.

The cross extended the previous day's modest intraday pullback from the three-month high level of 0.9175 and witnessed some follow-through profit-taking on Tuesday. The downtick was sponsored by the emergence of some heavy selling around the shared currency, which failed to benefit from hotter-than-expected Eurozone consumer inflation figures for June.

According to the preliminary estimates, the headline Eurozone CPI rose by 0.3% YoY during the reported month as against 0.1% expected and previous. Separately, core CPI (excluding food and energy costs) matched consensus estimates and edged lower to 0.8% YoY rate from 0.9% previous. The data, however, failed to impress bulls or provide any impetus to the cross.

On the other hand, the British pound remained depressed amid doubts over Britain’s ability to pay for a massive boost to public spending. The worries surfaced after the UK Prime Minister Boris Johnson promised to double public investments. Johnson on Tuesday set out plans on how the government will help the UK recover from the pandemic with £5bn for infrastructure projects.

This comes amid persistent Brexit uncertainties, which coupled with weaker-than-anticipated UK GDP print took its toll on the sterling. This, in turn, helped limit any deeper losses and held the EUR/GBP cross well within the previous day's broader trading range.

Hence, it will be prudent to wait for some strong follow-through selling before confirming that the recent leg up might have already run out of the steam and positioning for any further near-term corrective slide for the EUR/GBP cross.

Technical levels to watch


Today last price 0.9126
Today Daily Change -0.0014
Today Daily Change % -0.15
Today daily open 0.914
Daily SMA20 0.8988
Daily SMA50 0.8898
Daily SMA100 0.8822
Daily SMA200 0.8702
Previous Daily High 0.9176
Previous Daily Low 0.9085
Previous Weekly High 0.91
Previous Weekly Low 0.9001
Previous Monthly High 0.9054
Previous Monthly Low 0.8691
Daily Fibonacci 38.2% 0.9141
Daily Fibonacci 61.8% 0.912
Daily Pivot Point S1 0.9092
Daily Pivot Point S2 0.9043
Daily Pivot Point S3 0.9001
Daily Pivot Point R1 0.9182
Daily Pivot Point R2 0.9224
Daily Pivot Point R3 0.9273



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.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD bounces after upbeat COVID-19 cure news

EUR/USD is trading above 1.13, rebounding from the lows. Gilead reported that its drug Remdesevir substantially reduces mortality among COVID-19 patients. The news boosted stocks and weighed on the dollar. US coronavirus statistics are due out.


GBP/USD recaptures 1.26 as the market mood improves

GBP/USD is trading above 1.26 as the market mood improves and the safe-haven dollar retreats. Investors are shrugging off Brexit concerns and focusing on hopes to cure coronavirus. US COVID-19 statistics are due out.


XAU/USD consolidates daily gains above $1,800

After advancing to its highest level since September of 2011 at $1,818 on Wednesday, the XAU/USD pair staged a correction and briefly dropped below $1,800 on Thursday.

Gold News

Cryptocurrencies: War for dominance hit the bedrock of the market

Bitcoin tried to regain market share and activated sales in the Altcoin segment. BTC/USD, ETH/USD and XRP/USD are looking for supports and a rebound to push them to new elative highs. The current compression on the XRP/USD chart could trigger an exploding movement.

Read more

WTI drops to fresh weekly lows below $39 amid virus risks, IEA forecast

WTI (August futures on Nymex) extends the steep declines seen on Thursday to drops over 1.50% in the European session this Friday. The oil bears breach the 39 level to hit the lowest levels in eight days at 38.76.

Oil News