#EURGBP @ 0.87832 is oscillating in a narrow range of around 0.8780, however, the upside looks solid amid hawkish ECB bets. (Pivot Orderbook analysis)

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• EUR/GBP is oscillating in a narrow range of around 0.8780, however, the upside looks solid amid hawkish ECB bets.
• The odds for a 50 bps interest rate hike by the ECB are soaring dramatically.
• UK’s labor shortage could propel the PPI figures ahead.

The pair currently trades last at 0.87832.

The previous day high was 0.8815 while the previous day low was 0.8754. The daily 38.2% Fib levels comes at 0.8792, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.8778, expected to provide support.

The EUR/GBP pair is displaying back-and-forth moves around 0.8700 in the Asian session. The cross corrected firmly in Monday’s New York session after printing a fresh four-day high around 0.8815. The asset is expected to resume its upside journey amid rising hawkish bets for the interest rate decision by the European Central Bank (ECB).

Despite falling energy prices in the shared currency region, ECB policymakers are still not convinced that the Eurozone inflation will trim further meaningfully. Therefore, ECB policymakers are reiterating their hawkish stance on the interest rates for the upcoming monetary policy, scheduled for next week.

ECB policymaker Peter Kazimir cited on Monday that inflation easing was good news but added that it was not a reason to slow the pace of interest rate hikes, as reported by Reuters. He further added, “I am convinced that we need to deliver two more hikes by 50 basis points (bps).”

Also, ECB President Christine Lagarde supported the hawkish view, reiterating the statement that “We have made it clear that ECB interest rates will still have to rise significantly at a steady pace to reach levels that are sufficiently restrictive.”

The latest Reuters poll of economists claims the European Central Bank (ECB) hiking rates by another 50 bps at its February monetary policy meeting while the policy rate is expected to reach 3.25% by mid-year.

On the United Kingdom front, investors are focusing on the release of Wednesday’s Producer Price Index (PPI) data. UK’s inflation rate has declined gradually after recording a fresh 41-year high at 11.1%. Thanks to the falling energy prices that has softens the stubborn inflation. Now investors await the release of the UK PPI numbers for fresh cues.

Technical Levels: Supports and Resistances

EURGBP currently trading at 0.8782 at the time of writing. Pair opened at 0.8784 and is trading with a change of -0.02 % .

The pair is trading below its 20 Daily moving average @ 0.882, above its 50 Daily moving average @ 0.8729 , above its 100 Daily moving average @ 0.873 and above its 200 Daily moving average @ 0.8613

The previous day high was 0.8815 while the previous day low was 0.8754. The daily 38.2% Fib levels comes at 0.8792, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.8778, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.8753, 0.8723, 0.8692
• Pivot resistance is noted at 0.8814, 0.8845, 0.8875

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