- Euro supported by ECB monetary policy expectations.
- Pound attempts to recover ground.
- EUR/GBP with bullish bias, near strong barriers.
The EUR/GBP is trading flat, hovering around 0.8815, after rising for three consecutive days. The cross peaked at 0.8851, the highest level in a week before pulling back.
The Euro continues to receive support from European Central Bank’s officials who talk about the need to continue rising interest rates significantly. The latest round of economic data favors that perspective. The Eurozone PMIs surpassed expectations.
On Wednesday, the IFO business climate was released. For January the headline came in slightly below market consensus at 90.2 while the expectations index came in at 86.4. “While the outlook has brightened somewhat, the IFO readings suggest that this is starting to top out and so upside economic risks are likely limited, at least for now”, mentioned analysts at Brown Brother Harriman.
The cloudy outlook for the UK economy still weighs on the Pound. Still, the Bank of England is still seen raising rates at their next meeting.
At the 20-day SMA
The EUR/GBP is hovering at a critical area, around 0.8810/15 which contains the 20-day Simple Moving Average. If it manages to consolidate above, the Euro could gain momentum toward the next resistance at 0.8855/60, the last protection for another test of 0.8895/0.8900.
On the flip side, a daily close below 0.8790 should be a positive development for the Pound suggesting a deeper slide probably to the next support around 0.8740.
EUR/GBP daily chart
|Today last price||0.8835|
|Today Daily Change||0.0013|
|Today Daily Change %||0.15|
|Today daily open||0.8822|
|Previous Daily High||0.8847|
|Previous Daily Low||0.8767|
|Previous Weekly High||0.8887|
|Previous Weekly Low||0.8722|
|Previous Monthly High||0.8877|
|Previous Monthly Low||0.8547|
|Daily Fibonacci 38.2%||0.8817|
|Daily Fibonacci 61.8%||0.8798|
|Daily Pivot Point S1||0.8777|
|Daily Pivot Point S2||0.8732|
|Daily Pivot Point S3||0.8697|
|Daily Pivot Point R1||0.8857|
|Daily Pivot Point R2||0.8892|
|Daily Pivot Point R3||0.8937|
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.