#EURGBP @ 0.88644 scales higher for the third straight day and touches a fresh weekly high on Wednesday. (Pivot Orderbook analysis)

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• EUR/GBP scales higher for the third straight day and touches a fresh weekly high on Wednesday.
• Dovish BoE expectations weigh on the British Pound and remain supportive of the momentum.
• The recent hawkish ECB rhetoric underpins the Euro and supports prospects for additional gains.

The pair currently trades last at 0.88644.

The previous day high was 0.8846 while the previous day low was 0.8799. The daily 38.2% Fib levels comes at 0.8828, expected to provide support. Similarly, the daily 61.8% fib level is at 0.8817, expected to provide support.

The EUR/GBP cross builds on its goodish rebound from over a two-week low and gains some follow-through traction for the third successive day on Wednesday. The momentum lifts spot prices to a fresh weekly high during the mid-European session, with bulls now eyeing a breakout through the 0.8865-0.8875 supply zone.

The British Pound continues with its relative underperformance, which, along with a modest uptick in the shared currency, acts as a tailwind for the EUR/GBP cross. A bleak outlook for the UK economy has been fueling speculations that the Bank of England (BoE) is nearing the end of the current rate-hiking cycle. This, in turn, is seen as a key factor undermining the Sterling.

Furthermore, hawkish rhetoric from several European Central Bank (ECB) policymakers benefits the Euro and further lends support to the EUR/GBP cross. In fact, the ECB governing council member Robert Holzmann said on Wednesday that rates will have to rise significantly further to reach levels that are sufficiently restrictive to ensure a timely return of inflation to target.

In the absence of any relevant market-moving economic releases, either from the UK or the Eurozone, the fundamental backdrop supports prospects for a further near-term appreciating move. Bulls, however, might wait for a sustained move beyond the 0.8865-0.8875 hurdle before placing fresh bets. The EUR/GBP cross might then aim to reclaim the 0.9000 psychological mark in the near term.

Technical Levels: Supports and Resistances

EURGBP currently trading at 0.8861 at the time of writing. Pair opened at 0.8835 and is trading with a change of 0.29 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 0.879, 50 SMA 0.8715, 100 SMA @ 0.8707 and 200 SMA @ 0.8591.

The previous day high was 0.8846 while the previous day low was 0.8799. The daily 38.2% Fib levels comes at 0.8828, expected to provide support. Similarly, the daily 61.8% fib level is at 0.8817, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.8807, 0.878, 0.876
• Pivot resistance is noted at 0.8855, 0.8874, 0.8902

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