• A goodish pickup in the shared currency prompts some aggressive short-covering.
• The GBP consolidates recent gains led by Brexit optimism and remains supportive.
• The intraday positive mood seemed unaffected by today’s mixed German CPI prints.
The EUR/GBP cross built on its goodish intraday up-move and is currently placed at the top end of its daily trading range, around the 0.8580 region.
With investors still digesting the latest optimism over a possible delay to the fast-approaching Brexit deadline on March 29, the British Pound was seen consolidating recent gains and eventually helped the cross to stall its recent bearish trajectory.
This coupled with a goodish pickup in the shared currency provided an additional boost rather prompted some aggressive short-covering move and assisted the cross to recover a major part of the overnight slump to the lowest level since May 2017.
The intraday bullish sentiment seemed rather unaffected by today's mixed German consumer inflation figures, showing that the headline CPI is estimated to rise 0.5% m/m in January as compared to market expectations for a 0.6% m/m rise.
A slight disappointment was largely offset by hotter than expected yearly price rise, coming in at 1.6% as against 1.5% expected and 1.4% previous, and did little to provide any meaningful impetus to the common currency.
However, it would be prudent to wait for a strong follow-through up-move to see if the recovery is led by some genuine buying or is solely driven by short-covering amid highly oversold conditions on hourly/daily charts.
Technical levels to watch
EUR/GBP
Overview:
Today Last Price: 0.8584
Today Daily change: 38 pips
Today Daily change %: 0.44%
Today Daily Open: 0.8546
Trends:
Daily SMA20: 0.873
Daily SMA50: 0.8831
Daily SMA100: 0.8845
Daily SMA200: 0.8861
Levels:
Previous Daily High: 0.86
Previous Daily Low: 0.8529
Previous Weekly High: 0.8768
Previous Weekly Low: 0.8665
Previous Monthly High: 0.9119
Previous Monthly Low: 0.8617
Daily Fibonacci 38.2%: 0.8556
Daily Fibonacci 61.8%: 0.8573
Daily Pivot Point S1: 0.8517
Daily Pivot Point S2: 0.8488
Daily Pivot Point S3: 0.8446
Daily Pivot Point R1: 0.8587
Daily Pivot Point R2: 0.8629
Daily Pivot Point R3: 0.8658
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