• EUR/GBP has witnessed a pullback to near 0.8420 after intense selling pressure.
  • Investors are waiting for the release of the monetary policy by the BOE.
  • Euro bulls are underperforming amid weak Retail Sales.

The EUR/GBP pair has attracted some bids around 0.8400 after a significant sell-off from 0.8450. The cross tried hard to sustain above 0.8440 but failed to do so despite multiple attempts, dragging the asset lower to the round-level support of 0.8400.

Pound bulls are waiting for the announcement of the monetary policy by the Bank of England (BOE) in the London session. BOE Governor Andrew Bailey is expected to spurt the interest rates by 25 basis points (bps). UK’s Consumer Price Index (CPI) number at 7% signifies a lot of inconveniences for households as higher energy bills and food prices have reduced the real income of the households already. It is worth noting that the BOE raised its policy rates by 50 bps in its last monetary policy meeting. The BOE is adopting a standard hawkish stance this time as a gradual rise would remain a better option to avoid any dramatic impact on the economy.

Meanwhile, the euro bulls are likely to remain uncertain as the European Union has spelt out plans to prohibit Russian oil within six months. Post-Russia’s invasion of Ukraine, the EU is determined to surrender its dependency on Russian oil. It would be interesting to watch out for how the EU will fulfil its bumper demand of 3.5 million barrels daily without Russian oil.

The underperformance of Euro Retail Sales, released on Wednesday, has dented the euro’s demand. The Retail Sales landed at 0.8% lower than the market consensus of 1.4% and the prior print of 5.2%.

EUR/GBP

Overview
Today last price 0.8413
Today Daily Change 0.0006
Today Daily Change % 0.07
Today daily open 0.8407
 
Trends
Daily SMA20 0.8358
Daily SMA50 0.8364
Daily SMA100 0.8375
Daily SMA200 0.8445
 
Levels
Previous Daily High 0.845
Previous Daily Low 0.8396
Previous Weekly High 0.8467
Previous Weekly Low 0.8381
Previous Monthly High 0.8467
Previous Monthly Low 0.825
Daily Fibonacci 38.2% 0.8417
Daily Fibonacci 61.8% 0.8429
Daily Pivot Point S1 0.8386
Daily Pivot Point S2 0.8364
Daily Pivot Point S3 0.8332
Daily Pivot Point R1 0.844
Daily Pivot Point R2 0.8472
Daily Pivot Point R3 0.8493

 

 

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