#EURGBP @ 0.87234 rises to near 0.8730 ahead of the monetary policy announcement by the ECB.

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• EUR/GBP rises to near 0.8730 ahead of the monetary policy announcement by the ECB.

The pair currently trades last at 0.87234.

The previous day high was 0.8727 while the previous day low was 0.8703. The daily 38.2% Fib levels comes at 0.8718, expected to provide support. Similarly, the daily 61.8% fib level is at 0.8712, expected to provide support.

The EUR/GBP pair prints a fresh three-day high at 0.8730 in the European session. The cross strengthens ahead of the interest rate decision by the European Central Bank (ECB), which will be announced at 12:15 GMT.

Analysts at ING expect the ECB to keep rates on hold and to basically stick to a hawkish bias, keeping the door open to yet another rate hike in December. Currently, the rate at which the ECB is refinancing operations is 4.5%. The reasoning behind higher neutral ECB bets seems the slowdown fears not easing price pressures.

This week, a survey from S&P Global and Hamburg Commercial Bank (HCOB) showed that the Manufacturing PMI of the private sector dropped to 43.0 in October against September’s reading of 43.4. Investors anticipated a higher reading at 43.7. The Eurozone factory activities have been failing to meet the 50.0 threshold for more than a year. Eurozone Services PMI at 47.8, dropped sharply from the former reading and expectations of 48.7.

Investors see more downside in the Eurozone economy as deepening Middle East tensions could ramp up energy prices, which could fuel price pressures and squeeze the real income of households.

Meanwhile, the Pound Sterling faces selling pressure as investors expect that United Kingdom Prime Minister Rishi Sunak would fail to fulfill his promise of halving headline inflation to 5.4% by the year-end. The labor market conditions in the UK economy have been impacted heavily by the deteriorating demand environment as employers shed jobs for the third time in a row.

Technical Levels: Supports and Resistances

EURGBP currently trading at 0.8725 at the time of writing. Pair opened at 0.8724 and is trading with a change of 0.01 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 0.8669, 50 SMA 0.8624, 100 SMA @ 0.8605 and 200 SMA @ 0.8695.

The previous day high was 0.8727 while the previous day low was 0.8703. The daily 38.2% Fib levels comes at 0.8718, expected to provide support. Similarly, the daily 61.8% fib level is at 0.8712, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.8709, 0.8694, 0.8685
• Pivot resistance is noted at 0.8733, 0.8742, 0.8758

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