EUR/GBP oscillates around 0.8370 as investors await Eurozone GDP

• EUR/GBP is juggling in a 14-pips range ahead of Eurozone GDP.
• The Eurozone GDP could trim drastically to 3.4% vs. 5.4% o an annual basis.
• BOE Andrew Bailey may accelerate interest rates further to contain soaring price pressures.

The EUR/GBP pair is displaying back and forth moves in a narrow range of 0.8366-0.8380 in the early Tokyo session. The asset displayed a responsive buying action on Thursday after printing a fresh three-month low at 0.8346. Usually, a responsive buying action indicates that the market participants considered the asset a value bet and poured significant longs. The cross is displaying exhaustion signals on the downside and is likely to rebound to near the round-level resistance of 0.8400 ahead.

In today’s session, investors will keep an eye on Eurozone Gross Domestic Product (GDP) data. As per the market consensus, the economic data may tumble to 3.4% vs. 5.4% on an annual basis. While the quarterly GDP would trim to 0.2% from the prior release of 0.6%. An occurrence of the same may evaporate the recovery sign from the shared currency bulls.

Meanwhile, accelerating expectations of an energy crisis in eurozone are hurting the sentiment of the households. The demand for natural gas is likely to escalate as the Winter season is coming, which is known for higher demand for energy. The eurozone administration is looking for potential candidates, who can cater to their juggernaut energy demand but things will take time.

On the UK front, investors‘ focus will shift to the interest rate decision by the Bank of England (BOE). BOE Governor Andrew Bailey is likely to elevate its interest rates further as the inflation rate has climbed to 9.4% and has not shown any sign of hitting a peak yet. The ongoing upside momentum in the price pressures in the UK could escalate to a two-digit figure swiftly.