#EURGBP @ 0.88007 Euro tumbles following comments from (Pivot Orderbook analysis)

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• Euro tumbles following comments from
• Pound among top performers of the day after UK GDP data, ahead of CPI numbers.
• EUR/GBP sharp reversal sends the price under 0.8800 and below the 20-day SMA.

The pair currently trades last at 0.88007.

The previous day high was 0.8879 while the previous day low was 0.8847. The daily 38.2% Fib levels comes at 0.8867, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.8859, expected to provide resistance.

The EUR/GBP is losing more than 50 pips, having the worst day in at least two months. Recently it hits levels under 0.8800 for the first time in a week.

The cross broke below 0.8830 and accelerated the downside. It bottomed at 0.8792 and remains near the lows, under pressure as the Euro tumbles.

Bloomberg reported that “European Central Bank policymakers are starting to consider a slower pace of interest rate hikes” after a 50 basis points hike in February, “according to officials with knowledge of their discussions.”

The report triggered a decline of the Euro across the board with EUR/USD falling from near 1.0870 to levels under 1.0800. The common currency is the worst performer of the American session.

The Pound was already trading higher versus the Euro, supported by better-than-expected UK economic data. The unemployment rate remains unchanged at 3.7% in November while average weekly earnings, excluding bonuses, arrived at 6.4% in 3Mo/YoY in November versus 6.1% of the previous month and the 6.3% expected. On Wednesday, the UK will report the Consumer Price Index. The headline is expected at 10.6% (annual) in December down from 10.7% in November.

The EUR/GBP is falling after facing resistance at the 0.8900 level and with the current bearish acceleration, it could test the next crucial support around 0.8770/75, that is the bottom of the recent range.

Technical indicators are turning south and could point to furthers losses if current levels are confirmed. The cross is back below the 20-day Simple Moving Average that stands at 0.8820. A recovery back above 0.8830 would alleviate the bearish pressure. A daily close above 0.8900 would open the doors to more gains.

Technical Levels: Supports and Resistances

EURGBP currently trading at 0.8827 at the time of writing. Pair opened at 0.8873 and is trading with a change of -0.52 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 0.8825, 50 SMA 0.8728, 100 SMA @ 0.8723 and 200 SMA @ 0.8601.

The previous day high was 0.8879 while the previous day low was 0.8847. The daily 38.2% Fib levels comes at 0.8867, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.8859, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.8853, 0.8834, 0.8821
• Pivot resistance is noted at 0.8886, 0.8898, 0.8918

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