EUR/GBP finds resistance at 0.8860 and returns to 0.8800 area

The Euro trims gains after failure at the 0.8860 resistance area.
The Pound appreciates across the board amid a softer USD.
Longer-term, the pair remains positive, with the GBP weighed on after BoE's dovish hike.

Guillermo Alcala FXStreet

The Euro has been unable to breach the 0.8860 resistance area on Wednesday. The pair retreated to 0.8800 at the moment of writing, retracing Tuesday’s gains, and is on track to put an end to a five-day winning streak.

The Pound picks up on a quiet market session

The Sterling is trimming losses on Wednesday, underpinned by a mild recovery on the GBP/USD, as the US Dollar loses ground across the board in a thin market session and amid a moderate appetite for risk.

In absence of key macroeconomic releases, investors remain moderately upbeat following news that the Chinese authorities are set to end the restrictions for inbound travelers, which is expected to accelerate economic recovery in the major Asian economy.

On a longer-term perspective, however, the Pound remains on the defensive, with the EUR/GBP nearly 3% up in the last two weeks.

The Bank of England hurt GBP demand after slowing down its tightening cycle after its December monetary policy meeting. The BoE hiked rates by 0.5%, following a 0.75% hike in November, with two out of the nine committee members voting to leave rates unchanged. This has boosted speculation about a softer normalization phase in 2023 and possibly a lower interest rate peak.

Technical levels to watch

EUR/GBP

Overview
Today last price	0.8812
Today Daily Change	-0.0035
Today Daily Change %	-0.40
Today daily open	0.8847

Trends
Daily SMA20	0.8679
Daily SMA50	0.8684
Daily SMA100	0.8669
Daily SMA200	0.8569

Levels
Previous Daily High	0.8863
Previous Daily Low	0.8801
Previous Weekly High	0.8834
Previous Weekly Low	0.8691
Previous Monthly High	0.8828
Previous Monthly Low	0.8572
Daily Fibonacci 38.2%	0.8839
Daily Fibonacci 61.8%	0.8825
Daily Pivot Point S1	0.8811
Daily Pivot Point S2	0.8775
Daily Pivot Point S3	0.8748
Daily Pivot Point R1	0.8873
Daily Pivot Point R2	0.89
Daily Pivot Point R3	0.8936

Author

Guillermo Alcala

FXStreet

Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.

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