#EURGBP @ 0.88694 Euro remains supported by ECB official hawkish comments. (Pivot Orderbook analysis)

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• Euro remains supported by ECB official hawkish comments.
• EUR/GBP with bullish bias, moving between 0.8845 and 0.8890

The pair currently trades last at 0.88694.

The previous day high was 0.8897 while the previous day low was 0.8852. The daily 38.2% Fib levels comes at 0.8869, expected to provide support. Similarly, the daily 61.8% fib level is at 0.888, expected to provide resistance.

The EUR/GBP is rising on Monday after a modest slide on Friday and is moving sideways, under the 0.8900 resistance area. The bias continues to point to the upside.

The EUR/GBP found support over the last session at the 0.8845 area. As long as it holds above, more gains seem likely, but the Euro needs to break the critical 0.8900 resistance area.

The bias is bullish with vital support seen at 0.8815/20, the confluence of an uptrend line and the 20-day Simple Moving Average (SMA). A slide below would expose the next relevant support at 0.8770.

From a fundamental perspective, comments from European Central Bank board members continue to be on the hawkish side. On Monday, it was Olli Rhen, Governor of the Bank of Finland, who said that interest rates will continue to rise considerably. This contrasts with the Bank of England that is having a debate about what to do next. Concerns about the health of the UK economy adds pressure to the BoE to stop the tightening cycle. The divergence between the expectations of the central banks is offering support at the moment to the EUR/GBP.

On Tuesday, the UK will report on the labor market and Germany will release the final reading of inflation (December) and the ZEW sentiment survey.

Technical Levels: Supports and Resistances

EURGBP currently trading at 0.8869 at the time of writing. Pair opened at 0.8854 and is trading with a change of 0.17 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 0.8818, 50 SMA 0.8725, 100 SMA @ 0.8719 and 200 SMA @ 0.8599.

The previous day high was 0.8897 while the previous day low was 0.8852. The daily 38.2% Fib levels comes at 0.8869, expected to provide support. Similarly, the daily 61.8% fib level is at 0.888, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.8838, 0.8822, 0.8793
• Pivot resistance is noted at 0.8884, 0.8913, 0.8929

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