#EURGBP @ 0.89658 is accelerating towards 0.9000 on BOE’s policy easing measure to stabilize financial markets. (Pivot Orderbook analysis)

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• EUR/GBP is accelerating towards 0.9000 on BOE’s policy easing measure to stabilize financial markets.
• The BOE has announced a 13-day bond-buying program worth GBP five billion/each day.
• Hawkish comments from ECB Lagarde will keep the shared currency bulls on the upside.

The pair currently trades last at 0.89658.

The previous day high was 0.9066 while the previous day low was 0.8853. The daily 38.2% Fib levels comes at 0.8935, expected to provide support. Similarly, the daily 61.8% fib level is at 0.8985, expected to provide resistance.

The EUR/GBP pair has rebounded firmly after a short-lived pullback to near 0.8960 in the early European session. The asset is expected to refresh its day’s high above 0.8980 and will ultimately march towards the psychological hurdle of 0.9000. On a broader note, the asset is oscillating in a range of 0.8855-0.9068, and an upside breakout is expected.

A surprise announcement of a bond-purchase program by the Bank of England (BOE) has cleared that the respective economy doesn’t have the stomach to fight inflation while simultaneously keeping the financial markets stable. After sensing immense volatility in the bond market, the BOE chose the route of injecting liquidity into the economy through a bond-buying program. An immediate 13-day long program of buying government bonds worth GBP five billion regularly will offset the ongoing fight against inflation to a certain point.

The UK households and BOE policymakers are already facing economic turmoil due to ultra-hot inflation and the infusion of more liquidity into the economy will worsen the situation further.

Now, investors are shifting their focus toward the Gross Domestic Product (GDP) data, which is due on Friday. The annual and quarterly data is expected to remain steady at 2.9% and -0.1% respectively.

On the Eurozone front, the hawkish commentary from European Central Bank (ECB) President Christine Lagarde strengthened the shared continent bulls. ECB Lagarde sees a rate hike by 125 basis points (bps) in upcoming several meetings.

Going forward, investors will focus on the Eurozone Consumer Confidence data. As per the preliminary estimates, the sentiment data will remain steady at -28.8. It is worth noting that the economic data has got vulnerable each passing month over the past year.

Technical Levels: Supports and Resistances

EURGBP currently trading at 0.8968 at the time of writing. Pair opened at 0.8937 and is trading with a change of 0.35 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 0.8739, 50 SMA 0.8567, 100 SMA @ 0.8551 and 200 SMA @ 0.8464.

The previous day high was 0.9066 while the previous day low was 0.8853. The daily 38.2% Fib levels comes at 0.8935, expected to provide support. Similarly, the daily 61.8% fib level is at 0.8985, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.8838, 0.8739, 0.8625
• Pivot resistance is noted at 0.9051, 0.9165, 0.9264

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