The EURGBP pair, currently trading at 0.86170, remains higher than 0.8600 in anticipation of upcoming decisions by the central banks.

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• EUR/GBP stays above 0.8600 ahead of the central banks’ decisions.

The pair currently trades last at 0.86170.

The previous day high was 0.8616 while the previous day low was 0.8569. The daily 38.2% Fib levels comes at 0.8598, expected to provide support. Similarly, the daily 61.8% fib level is at 0.8587, expected to provide support.

EUR/GBP attempts to extend its gains on the second day, trading higher around 0.8610 during the European session on Monday. The pair might gain strength after the statement made by the European Central Bank’s (ECB) President Christine Lagarde on Friday.

Lagarde stated that ECB policymakers had not considered the possibility of implementing further rate cuts. The ECB’s President also suggested that the central bank’s intention was to maintain interest rates at elevated levels for an extended duration and was ready to increase rates if it was deemed necessary.

Economists at Commerzbank have analyzed the outlook for the Euro (EUR) following the ECB’s rate hike last week. According to their analysis, the central bank’s decision to signal the end of rate hikes for the time being was largely in line with market expectations. This move by the ECB, however, comes with a certain level of risk, as it indicates a potentially less hawkish stance on monetary policy.

On the other side, the trades of cross-pair anticipate that the Bank of England (BoE) will raise interest rates by 25 basis points in the upcoming meeting scheduled for Thursday. This potential rate hike by the BoE reflects the central bank’s efforts to address inflationary pressures and stabilize the British economy.

However, the BoE Governor Andrew Bailey has indicated that the central bank is getting closer to ending its series of interest rate increases. This statement, coupled with concerns about a potential recession and signs of a cooling UK labor market, may increase pressure on the BoE to pause its rate-hiking cycle.

In the upcoming week, there are significant events scheduled for the Eurozone. The Eurozone Harmonized Index of Consumer Prices (HICP) for August will be published on Tuesday and the preliminary HCOB Composite PMI for September is scheduled to be released on Friday. These datasets may provide insights into inflation trends in the Eurozone bloc, which could provide support for the EUR/GBP traders to place their bets.

Technical Levels: Supports and Resistances

EURGBP currently trading at 0.8613 at the time of writing. Pair opened at 0.8604 and is trading with a change of 0.1 % .

The pair is trading above its 20 Daily moving average @ 0.8572, above its 50 Daily moving average @ 0.8584 , above its 100 Daily moving average @ 0.861 and below its 200 Daily moving average @ 0.8712

The previous day high was 0.8616 while the previous day low was 0.8569. The daily 38.2% Fib levels comes at 0.8598, expected to provide support. Similarly, the daily 61.8% fib level is at 0.8587, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.8577, 0.855, 0.8531
• Pivot resistance is noted at 0.8624, 0.8643, 0.867

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