The Pound is backed by the UK data and the expectations of a rate hike by the BoE, showing as #EURGBP at 0.85341.

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• UK data and BoE rate hike expectations support the Pound.

The pair currently trades last at 0.85341.

The previous day high was 0.8592 while the previous day low was 0.8544. The daily 38.2% Fib levels comes at 0.8573, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.8562, expected to provide resistance.

The EUR/GBP is breaking below the support area of 0.8540 and is currently trading around 0.8530, its lowest level since August 2022. The cross resumed its downward trend after a brief pause and a short-lived rebound following the European Central Bank (ECB) meeting.

On Thursday, as expected, the ECB raised rates by 25 basis points. Despite the hawkish tone from President Lagarde, who mentioned that another hike in July was likely, the EUR/GBP only rose modestly approaching 0.8600 and then weakened again.

Next Thursday, the Bank of England (BoE) will announce its decision and a 25 basis points hike is expected. “Even though the BoE was among the first of the large central banks to engage in rate hikes, the UK’s persistent inflation means it will be among the last to complete its hiking cycle,” said analysts at Rabobank.

The expectation that the BoE will continue to raise rates after the ECB and the Fed end their tightening cycles has been supporting the Pound. This week, the Sterling has outperformed on those expectations and also following upbeat UK employment data.

The EUR/GBP is currently exhibiting a clear bearish bias, and a consolidation below 0.8530 would likely pave the way for further losses. The next levels to watch are the 0.8500 area, followed by support at 0.8480. However, a recovery above 0.8550 would alleviate some of the bearish pressure.

To improve the short-term outlook, the Euro needs to climb above 0.8610, which is a horizontal resistance level and the 20-day Simple Moving Average. Breaking above this level would signal that the bulls are gaining strength and could potentially push the cross higher.

Technical Levels: Supports and Resistances

EURGBP currently trading at 0.8535 at the time of writing. Pair opened at 0.8562 and is trading with a change of -0.32 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.8623, 50 SMA 0.8714, 100 SMA @ 0.8773 and 200 SMA @ 0.8753.

The previous day high was 0.8592 while the previous day low was 0.8544. The daily 38.2% Fib levels comes at 0.8573, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.8562, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.854, 0.8518, 0.8492
• Pivot resistance is noted at 0.8587, 0.8613, 0.8635

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