EUR/GBP trades with modest losses around 0.8575 zone, downside seems limited


  • EUR/GBP faces rejection near the 100-day SMA and snaps a seven-day winning streak.
  • The better-than-expected BRC Like-For-Like Sales underpin the GBP and exert pressure.
  • Bets for more aggressive policy easing by the BoE should cap the GBP and lend support.

The EUR/GBP cross continues with its struggle to make it through the 100-day Simple Moving Average (SMA) hurdle and meets with some supply on Tuesday. Spot prices remain depressed near the 0.8575 region through the first half of the European session and for now, seem to have snapped a seven-day winning streak.

The British Pound's (GBP) relative outperformance against its European counterpart could be attributed to the upbeat domestic data, which showed that Like-For-Like Retail Sales surged by the 3.2% YoY rate in March. This was better than the 1.8% rise expected and marked the strongest growth since August 2023, which, in turn, is seen as a key factor exerting some downward pressure on the EUR/GBP cross.

Apart from this, speculations that the European Central Bank (ECB) could cut interest rates soon amid a faster-than-anticipated fall in the Eurozone inflation undermine the shared currency and contribute to the offered tone surrounding the pair. That said, rising bets for at least four interest rate cuts this year by the Bank of England (BoE), starting in June, might cap the GBP and lend some support to the EUR/GBP cross.

This, in turn, warrants some caution before positioning for any further downfall in the absence of any relevant economic data due on Tuesday, either from the UK or the Eurozone. Meanwhile, the BoE Governor Andrew Bailey's appearance might influence the Sterling Pound and provide some impetus to the EUR/GBP cross. The focus, however, will remain on the monthly UK GDP print and factory data for February, due for release on Friday.

EUR/GBP

Overview
Today last price 0.8577
Today Daily Change -0.0004
Today Daily Change % -0.05
Today daily open 0.8581
 
Trends
Daily SMA20 0.8559
Daily SMA50 0.8551
Daily SMA100 0.8584
Daily SMA200 0.8607
 
Levels
Previous Daily High 0.8584
Previous Daily Low 0.8574
Previous Weekly High 0.8586
Previous Weekly Low 0.8539
Previous Monthly High 0.8602
Previous Monthly Low 0.8504
Daily Fibonacci 38.2% 0.858
Daily Fibonacci 61.8% 0.8578
Daily Pivot Point S1 0.8575
Daily Pivot Point S2 0.8569
Daily Pivot Point S3 0.8564
Daily Pivot Point R1 0.8586
Daily Pivot Point R2 0.859
Daily Pivot Point R3 0.8596

 

 

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