EUR/GBP Price Analysis: Fades weekly rebound near 0.8550 ahead of UK inflation

  • EUR/GBP eases from weekly top, edges higher of late.
  • Sustained bounce off 61.8% Fibonacci retracement, break of 200-SMA favor buyers.
  • UK CPI may arrive firmer for August, backing BOE tapering concerns and the GBP bulls.

EUR/GBP struggles to extend recovery moves around 0.8550 during Wednesday’s Asian session. In doing so, the cross-currency pair steps back from the 38.2% Fibonacci retracement (Fibo.) level of August-September upside.

Given the steady RSI and a pullback from the short-term key Fibo. level, EUR/GBP may retest the 200-SMA level surrounding 0.8540.

However, any further downside past 0.8540 remains doubtful as to the 61.8% Fibonacci retracement near 0.8510 and the 0.8500 threshold challenges the bears afterward.

Meanwhile, an upside clearance of 38.2% Fibo near 0.8550 will direct EUR/GBP buyers to a three-week-old horizontal resistance near 0.8565.

Also acting as an additional upside filter is the 23.6% Fibonacci retracement around 0.8575 and the monthly peak of 0.8613.

To sum up, EUR/GBP consolidates recent gains but the bears need confirmation to step in. Also, today’s UK CPI data will be important to watch given the latest chatters over the winding up of the Quantitative Easing (QE) by the BOE’s Husher, also previously backed by the other policymakers. That said, the headline CPI is likely to jump from 2.0% to 2.9% YoY.

EUR/GBP: Four-hour chart

Trend: Further upside expected

Additional important levels

Today last price 0.8547
Today Daily Change -0.0001
Today Daily Change % -0.01%
Today daily open 0.8548
Daily SMA20 0.8567
Daily SMA50 0.8547
Daily SMA100 0.8579
Daily SMA200 0.8678
Previous Daily High 0.8552
Previous Daily Low 0.8511
Previous Weekly High 0.8614
Previous Weekly Low 0.852
Previous Monthly High 0.8599
Previous Monthly Low 0.845
Daily Fibonacci 38.2% 0.8536
Daily Fibonacci 61.8% 0.8526
Daily Pivot Point S1 0.8522
Daily Pivot Point S2 0.8496
Daily Pivot Point S3 0.8481
Daily Pivot Point R1 0.8563
Daily Pivot Point R2 0.8578
Daily Pivot Point R3 0.8604



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

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD remains pressured after US data misses estimates

EUR/USD is trading closer to 1.1750, paring its recovery from earlier in the day as the safe-haven dollar is bid. US Consumer Sentiment missed estimates with 72 points in September. The financial woes of China's Evergrande are weighing on sentiment.


GBP/USD trades under 1.38 amid on UK data, dollar strength

GBP/USD is on the back foot, trading under 1.38 after UK Retail Sales figures disappointed with -0.9% in August, worse than expected. Brexit uncertainty and dollar demand weighed on the pair earlier. 


XAU/USD surrenders intraday gains, drops closer to $1,750 level

Gold struggled to preserve its intraday gains and dropped to the lower end of the daily trading range during the early North American session. 

Gold News

Experts say Ripple will win SEC lawsuit, which might propel XRP to new all-time highs

The latest development in the ongoing SEC vs. Ripple lawsuit is that documents are classified as privileged and blocked for public viewing. Though institutional investors are yet to take big bets on the altcoin in 2021, retail investors are actively trading in XRP.

Read more

US Michigan Consumer Sentiment Preview: Markets will have to look hard for positive signs

Consumer outlook expected to rebound to 72.2 in September. August’s 70.2 was the lowest since December 2011. Inflation and Delta variant wearing on US optimism. Markets face negative dollar risk from fading consumer optimism.

Read more