EUR/GBP treads water above 0.8600 after three-day uptrend


  • EUR/GBP seesaws in a choppy range following the previous day’s jump to weekly top.
  • Concerns over Brexit, covid and sluggish market sentiment test the bulls.
  • German Retail Sales, ECB’s Lagarde eyed for fresh impulse.

EUR/GBP bulls lack ammunition to extend the previous three-day run-up while taking rounds to 0.8630-35 during early Wednesday. The cross-currency pair jumped the most in a month the previous day amid broad GBP selling and upbeat European data. However, the recent consolidation of the market sentiment and a quiet session restrict the pair’s immediate upside.

A strong print of Eurozone CPI, 2.0% YoY for May, joined the reduction in the Unemployment rate and upbeat German Manufacturing PMI to back the Euro (EUR) bulls the previous day. Also adding to the regional currency’s strength was the US dollar’s broad weakness amid a jump in the US 10-year Treasury yields.

On the other hand, the UK’s zero covid-led death couldn’t favor the British Pound (GBP) as sellers sneaked in after updates revealed that the UK exports of services dropped by £110 billion followed the Brexit, per the research from the Aston University in Birmingham. Additionally, chatters that the heavy unlock in Britain is dangerous amid the covid variant outbreak as well as a downward revision to the UK Manufacturing PMI for May, from 66.1 to 65.6, offered extra reasons to the EUR/GBP buyers to stay hopeful.

It should, however, be noted that the recent pause in the pair’s moves could be traced to the indecisive performance of the risk barometers, namely S&P 500 Futures and US Treasury yields, amid an absence of major data/events.

Looking forward, EUR/GBP traders will keep their eyes on qualitative catalysts for fresh impulse as ECB President Christine Lagarde is up for a speech and could try to reject the tapering woes while downplaying the recent jump in CPI. On the data side, Germany’s Retail Sales for May, expected 10.1% versus 11% prior, will decorate the calendar.

Given the likeliness of the market consolidation phase, EUR/GBP could witness a pullback if the scheduled data/events pose negatives for the EUR.

Technical analysis

A clear break of 50-day SMA, around 0.8625, enables EUR/GBP to aim for a monthly resistance line near 0.8655.

Additional important levels

Overview
Today last price 0.8631
Today Daily Change 0.0000
Today Daily Change % 0.00%
Today daily open 0.8631
 
Trends
Daily SMA20 0.8619
Daily SMA50 0.8626
Daily SMA100 0.8672
Daily SMA200 0.8855
 
Levels
Previous Daily High 0.8646
Previous Daily Low 0.8585
Previous Weekly High 0.8672
Previous Weekly Low 0.8575
Previous Monthly High 0.8711
Previous Monthly Low 0.8561
Daily Fibonacci 38.2% 0.8622
Daily Fibonacci 61.8% 0.8608
Daily Pivot Point S1 0.8595
Daily Pivot Point S2 0.856
Daily Pivot Point S3 0.8535
Daily Pivot Point R1 0.8656
Daily Pivot Point R2 0.8681
Daily Pivot Point R3 0.8716

 

 

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

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD eases below 1.1900, Eurozone GDP, US PCE Inflation eyed

EUR/USD holds the lower ground below 1.1900 amid broad-based US dollar rebound. The dollar benefits from covid woes, ignores Treasury yields pullback. US GDP backs Fed’s resistance to discuss tapering. A busy docket ahead, with focus on Eurozone GDP and US PCE inflation.

EUR/USD News

GBP/USD retreats toward 1.3950 as USD rebounds

GBP/USD pauses the advance and retreats towards 1.3850 ahead of the London open. The US dollar rebounds toward 92.00 after hitting a one-month low. Sterling remains underpinned on hopes that the BOE could be less dovish further due to a steady decline in the UK’s covid cases.

GBP/USD News

Gold retreats from a two-week high near $1,840

Gold prices edge lower on Friday, after testing a two-week high near $1840 on Thursday. The prices were gained for the third straight session on weaker US Dollar and signal by the US Fed that taper could be delayed as there is still a long way to substantial progress. 

Gold News

Ripple bulldozes resistance, eyes $1.00

XRP price rebound has taken on an impulsive tone, lifting the cross-border remittances token near the convergence of the 200-day SMA with the longstanding inverse head-and-shoulders neckline around $0.775. Ripple falls short of triggering a double bottom pattern.

Read more

US Core PCE Price Index June Preview: Bad will not be bad enough

Inflation is rampant. Consumers, politicians, and economists have noticed. Even the Federal Reserve has concerns, though not enough to modify the easy money policy that is abetting the increases. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures