EUR/GBP testing 0.8640 as the Euro sheds more weight against the Pound Sterling


  • The EUR/GBP is dropping into the 0.8640 level on Wednesday as the Euro continues to weaken. 
  • Eurozone Consumer Confidence held steady while the business outlook declined further.
  • Eurozone HICP inflation on the docket for Thursday.

The EUR/GBP is extending its ongoing bearish momentum, slipping into 0.8640 and set for a fifth straight day of declines as the Euro (EUR) continues to give up ground to the Pound Sterling (GBP). The EUR/GBP is only slightly lower on the day, shedding a tenth of a percent in intraday trading, but the pair is set to close in the red for seven of the last eight consecutive trading days.

Thursday brings the latest Eurozone Harmonized Index of Consumer Prices (HICP) inflation, and investors are looking for a continued cooldown in Eurozone inflation. The YoY Core November HICP is forecast to come in at 3.9% versus the previous reading of 4.2%, and the headline annualized HICP inflation is expected to decline from 2.9% to 2.2% for the year into November.

Eurozone Unemployment Rate for October is also slated for release, and is expected to hold steady at 6.5%, in-line with September's print.

EUR/GBP Technical Outlook

The EUR/GBP is dropping away from the 200-day Simple Moving Average (SMA) after making a clean break of the moving average from 0.8680, and the pair is dipping into fresh lows for November heading into the end of the month.

The pair has slid through moving average congestion with the 50-day SMA confirming a bullish crossover of the 200-day SMA, but with the pair bidding steadily lower price action might see a bearish rotation in the 50-day SMA.

Low bids are running into technical support from the rising trendline drawn from August's swing lows into 0.8520.

EUR/GBP Daily Chart

EUR/GBP Technical Levels

EUR/GBP

Overview
Today last price 0.8645
Today Daily Change -0.0011
Today Daily Change % -0.13
Today daily open 0.8656
 
Trends
Daily SMA20 0.8708
Daily SMA50 0.8689
Daily SMA100 0.8638
Daily SMA200 0.8679
 
Levels
Previous Daily High 0.8684
Previous Daily Low 0.8655
Previous Weekly High 0.8765
Previous Weekly Low 0.8672
Previous Monthly High 0.8754
Previous Monthly Low 0.8616
Daily Fibonacci 38.2% 0.8666
Daily Fibonacci 61.8% 0.8673
Daily Pivot Point S1 0.8646
Daily Pivot Point S2 0.8636
Daily Pivot Point S3 0.8617
Daily Pivot Point R1 0.8675
Daily Pivot Point R2 0.8694
Daily Pivot Point R3 0.8704

 

 

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