EUR/GBP Ends The Week Knocking On The Ceiling Near 0.87

By Joshua Gibson of FXStreet

Sunday, September 24, 2023 3:45 AM EDT

The EUR/GBP stretched for the 0.8700 major handle in Friday trading, closing the week with over a full percent of upside gains with the Euro (EUR) seeing its best trading week against the Pound Sterling (GBP) since early February.

BoE balks on rate hike, EU Manufacturing PMI misses the mark

The Bank of England (BoE) pulled back from a broadly-anticipated rate hike this Thursday after inflation figures for the UK economy came in broadly lower than expected. The UK central bank is seeing inflation fall away faster than previously expected, and the BoE is set to see a "none and done" end to the rate hike cycle.

Eurozone Purchasing Manager Index (PMI) figures came in mixed early Friday, with the headline Composite PMI for September printing at 47.1, reversing the forecast decline 46.5 and climbing further from the previous period's 46.7.

The underlying components were less positive, leaving the Euro with limited upside following the release.

The EU Services PMI printed at 48.4, well above the forecast 47.7 and improving from the previous 47.9.

The Manufacturing component flubbed market forecasts, printing a disappointing 43.4, ticking down from the previous 43.5 and entire missing the market's expected improvement to 44.0.

Next week is particularly anemic for both the Euro and the Pound Sterling, though next Friday will be seeing Gross Domestic Product (GDP) figures for the UK, to be closely followed by Consumer Index Price (CPI) numbers for the Eurozone.

EUR/GBP technical outlook

The EUR/GBP managed to etch in another gainer week, coming within sight of the 200-day Simple Moving Average (SMA) currently treading water near 0.8720.

The pair has accelerated cleanly through the descending trendline from July's swing high into the 0.8700 handle, and continued buying pressure will see the pair mount the psychological level and stage further gains.

On the downside, immediate technical support is coming from the 100-day SMA, currently turning bullish from 0.8600, and the bottom of recent consolidation is sitting further below near 0.8520.

EUR/GBP daily chart

(Click on image to enlarge)

EUR/GBP technical levels

EUR/GBP

OVERVIEW
Today last price	0.8696
Today Daily Change	0.0026
Today Daily Change %	0.30
Today daily open	0.867

TRENDS
Daily SMA20	0.8591
Daily SMA50	0.8592
Daily SMA100	0.8604
Daily SMA200	0.8712

LEVELS
Previous Daily High	0.8696
Previous Daily Low	0.8627
Previous Weekly High	0.8631
Previous Weekly Low	0.8558
Previous Monthly High	0.8669
Previous Monthly Low	0.8493
Daily Fibonacci 38.2%	0.8669
Daily Fibonacci 61.8%	0.8653
Daily Pivot Point S1	0.8633
Daily Pivot Point S2	0.8596
Daily Pivot Point S3	0.8565
Daily Pivot Point R1	0.8702
Daily Pivot Point R2	0.8733
Daily Pivot Point R3	0.877

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