EUR/GBP rises above 0.8600 for the first time since early July

Euro among top performers on Tuesday on ECB rate hike expectations.
Pound under pressure amid risk aversion.
EUR/GBP has gained more than 170 pips during the last three trading days.

Matías Salord FXStreet

The EUR/GBP accelerated the move to the upside and jumped to 0.8601, reaching the highest level since July 6. While the euro is among the best performers, the pound is under pressure amid risk aversion.

No more range

The rally in EUR/GBP started on Friday, on the back of comments from European Central Bank officials suggesting a 75 basis points rate hike at the next meeting. On Tuesday, Governing Council members Muller and Knott spoke about the possibility of a significant hike, boosting the euro further.

The pound is under pressure across the board. Cable hit a new two-year low. Concerns about UK’s economic outlook are growing as energy costs soar. Also, the decline in equity prices in Wall Street weighs on GBP. The Dow Jones is falling by 0.80% and the Nasdaq by 1.17%.

Since last Friday, the EUR/GBP cross has risen 175 pips. On Monday it broke the 0.8500 resistance area and the upper limit of a consolidation range. Now it is holding above 0.8540 and testing levels above the critical 0.8600 mark. The next resistance stands at 0.8640.

Technical levels

EUR/GBP

Overview
Today last price	0.8586
Today Daily Change	0.0045
Today Daily Change %	0.53
Today daily open	0.8541

Trends
Daily SMA20	0.8441
Daily SMA50	0.8486
Daily SMA100	0.848
Daily SMA200	0.8439

Levels
Previous Daily High	0.855
Previous Daily Low	0.8487
Previous Weekly High	0.8503
Previous Weekly Low	0.8408
Previous Monthly High	0.8679
Previous Monthly Low	0.8346
Daily Fibonacci 38.2%	0.8526
Daily Fibonacci 61.8%	0.8511
Daily Pivot Point S1	0.8502
Daily Pivot Point S2	0.8463
Daily Pivot Point S3	0.8439
Daily Pivot Point R1	0.8565
Daily Pivot Point R2	0.8589
Daily Pivot Point R3	0.8628

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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