The currency pair EURGBP, trading at 0.85637, reached its highest point of the day at 0.8600 before dropping back down below 0.8550.

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• EUR/GBP peaked at a daily high of 0.8600 and then retreated below 0.8550.

The pair currently trades last at 0.85637.

The previous day high was 0.8586 while the previous day low was 0.8561. The daily 38.2% Fib levels comes at 0.8571, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.8577, expected to provide resistance.

On Thursday, the Euro weakened against most of its rivals, including the USD, GBP, AUD, and JPY, following the European Central Bank’s (ECB) decision to hike rates by 0.25% as investors perceived a dovish tone in Christine Lagarde’s presser making German yields decrease.

Like Federal Reserve (Fed) Chair Jerome Powell on Wednesday, Christine Lagarde confirmed she was “open-minded” towards the September meeting as the decision will depend on the economic and inflation outlook. In addition, she stated that the Council will not engage in forward guidance and will have the option of either increasing or maintaining interest rates.

On the other hand, the GBP traded weak on Thursday against most of its rivals as investors continue to bet on a less aggressive Bank of England (BoE). Ahead of the August 3 decision, the World Interest Rate Possibilities (WIRP) suggest that the odds of a 50 basis point (bps) increase dropped nearly to 35%, and markets are discounting a terminal rate of 5.75-6.0% vs. 6.5% early in July.

From a technical perspective, the EUR/GBP pair retains the short-term bearish bias according to indicators on the daily chart. The Relative Strength Index (RSI) remains in negative territory. At the same time, the Moving Average Convergence Divergence (MACD) printed a red bar following two consecutive weeks of green bars, indicating that the bears are in the driver’s seat.

Support levels: 0.8540, 0.8530, 0.8500 (cycle low).
Resistance levels: 0.8582 (20-day Simple Moving Average), 0.8600, 0.8630.

Technical Levels: Supports and Resistances

EURGBP currently trading at 0.8561 at the time of writing. Pair opened at 0.8566 and is trading with a change of -0.06 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.8584, 50 SMA 0.86, 100 SMA @ 0.8693 and 200 SMA @ 0.8728.

The previous day high was 0.8586 while the previous day low was 0.8561. The daily 38.2% Fib levels comes at 0.8571, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.8577, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.8556, 0.8546, 0.853
• Pivot resistance is noted at 0.8582, 0.8597, 0.8607

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