EUR/GBP once again approaches the 0.8550 zone, the fall seems limited while waiting for the ECB

  • EUR/GBP fell on Thursday, although it managed to stay above the one-week low.
  • Bets on a more aggressive easing of monetary policy by the Bank of England limit the Pound and lend support to the pair.
  • Traders could also refrain from placing aggressive bets ahead of the ECB meeting.

EUR/GBP struggles to take advantage of the previous day's good rebound from the 0.8545 area, or one-week lows, and encounters a new offer on Thursday. Spot prices remained depressed during the early part of the European session and are currently trading around the 0.8560 area, as traders eagerly await the European Central Bank (ECB) meeting before placing new directional bets.

The ECB is expected to keep its main refinancing rate unchanged and attention will therefore turn to the new round of staff projections, which will be analyzed for clues about the timing of any next interest rate cut. . Markets have been pricing in a higher likelihood of the first rate cut coming in June, amid a faster-than-expected fall in eurozone inflation. This, in turn, weakens the common currency and puts some pressure on the EUR/GBP cross.

Therefore, the outlook, along with ECB President Christine Lagarde's comments at the post-meeting press conference, will play a key role in influencing the shared currency in the near term and provide a boost. significant to prices. As for central bank risk, rising bets that the Bank of England (BoE) will cut interest rates at least four times this year, starting in June, should limit gains in the British pound (GBP). ) and EUR/GBP losses.

Technically, the recent failure near the 100-day SMA and subsequent decline favor the bears. However, the aforementioned fundamental backdrop makes it prudent to wait for strong follow-through selling before positioning for any significant decline and eventual break through the 0.8500 psychological mark, or the yearly low touched in February. .

EUR/GBP

Panorama
Today's Latest Price 0.856
Today's Daily Change -0.0006
Today's Daily Change % -0.07
Today's Daily Opening 0.8566
Trends
20 Daily SMA 0.8561
SMA of 50 Daily 0.8552
SMA of 100 Daily 0.8581
SMA of 200 Daily 0.8607
Levels
Previous Daily High 0.8571
Previous Daily Low 0.8547
Previous Weekly High 0.8586
Previous Weekly Low 0.8539
Previous Monthly High 0.8602
Previous Monthly Low 0.8504
Daily Fibonacci 38.2% 0.8562
Daily Fibonacci 61.8% 0.8556
Daily Pivot Point S1 0.8552
Daily Pivot Point S2 0.8538
Daily Pivot Point S3 0.8529
Daily Pivot Point R1 0.8576
Daily Pivot Point R2 0.8585
Daily Pivot Point R3 0.8599

Source: Fx Street

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