EUR/GBP is trading with moderate losses around the 0.8575 area, declines appear limited

  • EUR/GBP faces rejection near the 100-day SMA breaking a seven-day winning streak.
  • Better-than-expected BRC retail sales support the Pound and put pressure on it.
  • Bets on more aggressive monetary policy easing by the BoE should cap and support the British pound.

The EUR/GBP cross continues its struggle to clear the 100-day SMA hurdle and finds itself in some supply on Tuesday. Prices remain depressed near the 0.8575 area during the first half of the European session and, for the moment, appear to have snapped a seven-day winning streak.

The relative performance of the British Pound (GBP) against its European counterpart could be attributed to upbeat domestic data, which showed like-for-like retail sales rose 3.2% year-on-year in March. This growth was higher than the 1.8% forecast and marked the highest growth since August 2023, which in turn is seen as a key factor putting some downward pressure on the EUR/GBP cross.

Apart from this, speculation that the European Central Bank (ECB) could soon cut interest rates amid a faster-than-expected fall in Eurozone inflation undermines the shared currency and contributes to the offered tone surrounding the pair. That said, increasing bets on at least four interest rate cuts this year by the Bank of England (BoE), starting in June, could put a cap on the Pound and lend some support to the EUR/ GBP.

This, in turn, justifies some caution before taking a bearish position in the absence of relevant economic data for Tuesday, both from the United Kingdom and the Eurozone. Meanwhile, the appearance of BoE Governor Andrew Bailey could influence the British pound and give some boost to the EUR/GBP cross. However, attention will remain focused on the UK's monthly GDP release and factory data for February, due out on Friday.

EUR/GBP

Panorama
Today's Latest Price 0.8575
Today's Daily Change -0.0006
Today's Daily Change % -0.07
Today's Daily Opening 0.8581
Trends
20 Daily SMA 0.8559
SMA of 50 Daily 0.8551
SMA of 100 Daily 0.8584
SMA of 200 Daily 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

Source: Fx Street

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