• Technical factors and a weaker pound boost EUR/GBP to highest since May 2021.
  • Cross breaks multi-day range and soars.
  • UK data below expectations, BoE decision on Thursday.

The EUR/GBP broke a multi-day range and jumped to 0.8681, reaching the highest level since May 2021. The cross has gained almost a hundred pips on Tuesday, rising for the third consecutive day. The euro is also advancing versus the Swiss franc on Tuesday. EUR/CHF climbed above 1.0420, reaching the highest level since June 9.

The break of the critical resistance area of 0.8600 and also above 0.8650 boosted the euro further to the upside. The next level to watch now is 0.8700. The bullish tone in EUR/GBP will remain in place while above 0.8600.

Economic data from the UK came in below expectations with the unemployment rate rising unexpectedly to 3.8%. The figures contributed to weakening the pound ahead of the Bank of England (BoE) on Thursday.

The central bank is expected to raise the key rate by 25 basis points to 1.25%. “There won’t be updated macro forecasts until the next meeting on August 4. WIRP suggests around 35% odds of a 50 bp move, down from over 50% at the start of this week. However, odds of 50 bp moves at the August 4 and November 3 meetings have risen,” explained analysts at Brown Brothers Harriman. The pound remains under pressure despite tightening expectations.

Technical levels

EUR/GBP

Overview
Today last price 0.8659
Today Daily Change 0.0081
Today Daily Change % 0.94
Today daily open 0.8578
 
Trends
Daily SMA20 0.8518
Daily SMA50 0.8449
Daily SMA100 0.841
Daily SMA200 0.8443
 
Levels
Previous Daily High 0.8594
Previous Daily Low 0.8532
Previous Weekly High 0.8592
Previous Weekly Low 0.8486
Previous Monthly High 0.8619
Previous Monthly Low 0.8367
Daily Fibonacci 38.2% 0.857
Daily Fibonacci 61.8% 0.8555
Daily Pivot Point S1 0.8541
Daily Pivot Point S2 0.8505
Daily Pivot Point S3 0.8479
Daily Pivot Point R1 0.8604
Daily Pivot Point R2 0.863
Daily Pivot Point R3 0.8666

 

 

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