#EURGBP @ 0.88039 languishes near a fresh monthly low touched earlier this Wednesday. (Pivot Orderbook analysis)

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• EUR/GBP languishes near a fresh monthly low touched earlier this Wednesday.
• Bets for additional BoE rate hikes underpin the GBP and seem to cap the cross.
• Bears could aim to challenge the 100-day SMA support near the 0.8745 region.

The pair currently trades last at 0.88039.

The previous day high was 0.8887 while the previous day low was 0.879. The daily 38.2% Fib levels comes at 0.8827, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.885, expected to provide resistance.

The EUR/GBP cross enters a bearish consolidation phase and oscillates in a narrow trading band near a fresh monthly low touched earlier this Wednesday. The cross is currently placed just below the 0.8800 mark and seems vulnerable to extending its recent retracement slide from its highest level since September 2022 touched earlier this month.

The UK PMIs released on Tuesday indicated that business activity rose more than expected in February and fueled optimism that the country may be able to avoid a steep economic downturn. This, in turn, lifts bets for additional interest rate hikes by the Bank of England (BoE), which continues to underpin the British Pound and acts as a headwind for the EUR/GBP cross.

In contrast, the Eurozone PMI showed that business activity in the manufacturing sector deteriorated this month. Furthermore, the markets already seem to have fully priced in additional jumbo rate hikes by the European Central Bank (ECB) in the coming months. This, along with sustained US Dollar buying, is weighing on the shared currency and favours the EUR/GBP bears.

The aforementioned fundamental backdrop suggests that any attempted recovery might still be seen as a selling opportunity and runs the risk of fizzling out rather quickly. The EUR/GBP cross seems poised to slide further towards testing the 100-day SMA pivotal support, currently around the 0.8745 region. This is closely followed by the YTD low, around the 0.8720 zone, which if broken decisively will mark a fresh breakdown and pave the way for a further depreciating move.

Technical Levels: Supports and Resistances

EURGBP currently trading at 0.8794 at the time of writing. Pair opened at 0.8794 and is trading with a change of 0.0 % .

The pair is trading below its 20 Daily moving average @ 0.8856, below its 50 Daily moving average @ 0.882 , above its 100 Daily moving average @ 0.875 and above its 200 Daily moving average @ 0.8656

The previous day high was 0.8887 while the previous day low was 0.879. The daily 38.2% Fib levels comes at 0.8827, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.885, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.876, 0.8727, 0.8664
• Pivot resistance is noted at 0.8857, 0.892, 0.8954

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