#EURGBP @ 0.88473 The euro breaks above 0.8800 to hit session highs at 0.8855. (Pivot Orderbook analysis)

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• The euro breaks above 0.8800 to hit session highs at 0.8855.
• Bailey announces the end of the emergency support program and the pound plunges.
• BoE governor warns about unprecedented volatility in the long end of the gilt market.

The pair currently trades last at 0.88473.

The previous day high was 0.8814 while the previous day low was 0.8745. The daily 38.2% Fib levels comes at 0.8771, expected to provide support. Similarly, the daily 61.8% fib level is at 0.8788, expected to provide support.

The euro has broken higher against the British pound on Tuesday, breaching resistance at the 0.8800 area to hit two-week highs at 0.8855 so far. BoE Governor, Andrew Bailey’s comments regarding the latest monetary policy measures have crushed the pound

Bailey has shown its concerns about the “unprecedented volatility in the long end of the gilt market” and urged pension fund managers to finish rebalancing their portfolios by Friday. The Bank of England will end its emergency support program for the country’s fragile bond market.

The Bank expanded the bond-buying scheme last Tuesday in order to include inflation-linked debt, two weeks after having launched it, aiming to confront the turmoil created by Prime Minister Liz Truss with her announcement of tax cuts as a part of a set of unfunded economic reforms.

From a technical perspective, if the euro confirms above 0.8800, bulls might gain confidence to attack the 0.9000 psychological level ahead of the September, 28 high at 0.9070.

On the downside, below 0.8800, the next support levels might be 0.8740 (October, 7 low) and then probably at 0.8690 (Sept. 22 low).

Technical Levels: Supports and Resistances

EURGBP currently trading at 0.8858 at the time of writing. Pair opened at 0.8772 and is trading with a change of 0.98 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 0.8782, 50 SMA 0.8618, 100 SMA @ 0.8573 and 200 SMA @ 0.8477.

The previous day high was 0.8814 while the previous day low was 0.8745. The daily 38.2% Fib levels comes at 0.8771, expected to provide support. Similarly, the daily 61.8% fib level is at 0.8788, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.874, 0.8708, 0.8672
• Pivot resistance is noted at 0.8809, 0.8846, 0.8877

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