EUR/GBP Price Analysis: The upside barrier is seen at the 0.8750-55 zone

EUR/GBP gains ground near 0.8745 on weaker UK inflation data.
The cross holds above the 50- and 100-hour EMA; RSI indicator stands in bullish territory above 50.
The 0.8750-0.8755 zone acts as an immediate resistance level; the initial support level is located at 0.8721.

Lallalit Srijandorn FXStreet

The EUR/GBP cross extends its upside during the early European session on Thursday. The downbeat UK Consumer Price Index (CPI) data on Wednesday weighs on the British Pound (GBP) and acts as a tailwind for the EUR/GBP cross. Additionally, the GBP’s upside might be capped due to the possibility of cutting interest rates from the Bank of England (BoE) soon. At press time, the cross is trading around 0.8745, up 0.09% on the day.

From a technical perspective, EUR/GBP holds above the 50- and 100-hour Exponential Moving Averages (EMAs) on the four-hour chart, highlighting the path of least resistance for EUR/GBP is to the upside. Furthermore, the Relative Strength Index (RSI) stands in bullish territory above 50, supporting the buyers for now.

The 0.8750-0.8755 region acts as an immediate resistance level for the cross. The mentioned level is the confluence of the upper boundary of the Bollinger Band and a high of November 10. A decisive break above the latter will see a rally to 0.8835 (a high of May 3). Further north, the additional upside filter is seen at 0.8865 (high of April 25).

On the downside, the initial support level for the cross is located near a high of November 3 at 0.8721. The next contention level will emerge near the 100-hour EMA at 0.8710. Any follow-through selling below the latter will see a drop to the 0.8695–0.8700 zone, representing the lower limit of the Bollinger Band and a psychological round figure.

EUR/GBP four-hour chart

EUR/GBP

Overview
Today last price	0.8744
Today Daily Change	0.0006
Today Daily Change %	0.07
Today daily open	0.8738

Trends
Daily SMA20	0.871
Daily SMA50	0.8669
Daily SMA100	0.8625
Daily SMA200	0.8686

Levels
Previous Daily High	0.874
Previous Daily Low	0.8702
Previous Weekly High	0.8756
Previous Weekly Low	0.865
Previous Monthly High	0.8754
Previous Monthly Low	0.8616
Daily Fibonacci 38.2%	0.8726
Daily Fibonacci 61.8%	0.8717
Daily Pivot Point S1	0.8713
Daily Pivot Point S2	0.8689
Daily Pivot Point S3	0.8675
Daily Pivot Point R1	0.8751
Daily Pivot Point R2	0.8765
Daily Pivot Point R3	0.8789

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

USD/JPY eyes August swing low, near 155.20 ahead of US NFP

USD/JPY retests the August monthly swing low during the Asian session on Friday as a more hawkish repricing of BoJ rate-hike bets and a suspected intervention continue to underpin the Japanese Yen. Meanwhile, the US Dollar is seen consolidating the previous day's heavy losses amid soft US bond yields, further weighing on the currency pair as traders keenly await the US NFP report.

AUD/USD consolidates above 0.7200; US NFP awaited

AUD/USD holds steady above 0.7200, near its highest level since mid-May, as bulls await the US NFP report for more cues on the Fed's policy path before placing fresh bets. Meanwhile, the recent decline in US bond yields keeps the US Dollar depressed near its lowest level in over a week and acts as a tailwind for the Aussie amid the RBA's hawkish tilt.

Gold tumbles as blockbuster US NFP lift US Dollar, Treasury yields

Gold (XAU/USD) falls sharply on Friday, snapping a two-day recovery after the US Nonfarm Payrolls (NFP) report surprised strongly to the upside. The metal briefly climbed above $4,500 on Thursday, gaining nearly 2%, but has since erased a large part of that advance.

Crypto’s $638 million buyback boom may not be as bullish as it looks

Decentralized Finance (DeFi) protocols reportedly spent $638 million to buy back their native tokens in August, up 17% from a year earlier. On the surface, the buyback trend suggests the cryptocurrency industry is maturing fast, adopting one of Wall Street’s oldest tools to bolster valuations and distribute revenue. The headline becomes less impressive once the number is opened up.

Why hawkish Bank of Japan expectations aren't enough to sustain the Japanese Yen rally

The Japanese Yen (JPY) experienced a sudden burst higher after falling back below the 160.00 psychological mark against the US Dollar (USD) earlier this week amid a more hawkish repricing of Bank of Japan (BoJ) rate hike expectations.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.