#EURGBP @ 0.88299 ECB officials continue to speak about higher interest rates. (Pivot Orderbook analysis)

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• ECB officials continue to speak about higher interest rates.
• Euro is supported by higher EZ bond yields.
• EUR/GBP approaching again critical resistance area of 0.8850.

The pair currently trades last at 0.88299.

The previous day high was 0.8824 while the previous day low was 0.8769. The daily 38.2% Fib levels comes at 0.8803, expected to provide support. Similarly, the daily 61.8% fib level is at 0.879, expected to provide support.

The EUR/GBP is rising for the second day in a row, after hitting on Monday the lowest level in two weeks. The cross climbed from 0.8769 and peaked on Tuesday at 0.8846, supported by a stronger Euro across the board.

The Euro is up versus the Pound and the Swiss Franc on Tuesday. Higher Eurozone bond yields are helping the common currency. The German 10-year bond yield stands at 2.29% the highest in two days up 2.75% for the day.

European Central Bank officials continue to speak with a hawkish tone while in the UK, concerns about the health of the economy remain intact. UK fundamentals are on debate at the Bank of England’s Monetary Policy Committee.

“As UK fundamental remains characterised by recession, high inflation, low investment growth and weak productivity we continue to expect EUR/GBP to edge towards 0.90 on a 6 to 9 month view. That said, we will be continuing to watch developments surrounding the protocol closely”, explained analysts at Rabobank.

The chart show risks titled to the upside in EUR/GBP after the cross was able to hold above the 20-day Simple Moving Average (today at 0.8785). The upside remains limited by the critical resistance area of 0.8850. A daily close well above 0.8850 should open the doors to more gains in the short-term.

Technical Levels: Supports and Resistances

EURGBP currently trading at 0.8832 at the time of writing. Pair opened at 0.881 and is trading with a change of 0.25 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 0.8778, 50 SMA 0.8711, 100 SMA @ 0.8703 and 200 SMA @ 0.8588.

The previous day high was 0.8824 while the previous day low was 0.8769. The daily 38.2% Fib levels comes at 0.8803, expected to provide support. Similarly, the daily 61.8% fib level is at 0.879, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.8778, 0.8746, 0.8724
• Pivot resistance is noted at 0.8833, 0.8856, 0.8888

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