The EURGBP pair, trading at 0.85888, surged close to 0.8600 following a bullish statement from ECB Lagarde in the ECB Central Banking forum.

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• EUR/GBP has jumped to near 0.8600 after hawkish commentary from ECB Lagarde at the ECB forum of Central Banking.

The pair currently trades last at 0.85888.

The previous day high was 0.8595 while the previous day low was 0.8543. The daily 38.2% Fib levels comes at 0.8575, expected to provide support. Similarly, the daily 61.8% fib level is at 0.8563, expected to provide support.

The EUR/GBP pair has climbed to near the round-level resistance of 0.8600 in the London session. The cross has picked strength as European Central Bank (ECB) President Christine Lagarde has delivered hawkish remarks in the ECB forum of Central Banking.

ECB Lagarde has conveyed that inflation in Eurozone is extremely high and the central bank is required to make monetary policy sufficiently restrictive to tame price pressures. She further added the effect on inflation from rising wages has recently been amplified. Christine Lagarde also stated that the ECB is ensuring that inflation expectations remain anchored as the wage catch-up process plays out.

About ECB monetary policy outlook, ECB policymaker Matin Kazaks said on Tuesday that he sees the central bank raising interest rates beyond the July meeting if inflation remains too high. ECB Kazaks cleared that there are strong risks of persistence in inflation and that expectations of rate cuts in early 2024 are wrong.

Meanwhile, the Pound Sterling is facing pressure as elevated inflation in the United Kingdom is threatening their economic outlook. Higher interest rates by the Bank of England (BoE) are going to decline credit disbursals by commercial banks as firms would prefer to avoid higher interest obligations.

UK’s core inflation has jumped to fresh highs of 7.1%, which is making BoE Governor Andrew Bailey uncomfortable. Investors are anticipating that BoE Bailey is failing in achieving price stability.

Technical Levels: Supports and Resistances

EURGBP currently trading at 0.8591 at the time of writing. Pair opened at 0.858 and is trading with a change of 0.13 % .

The pair is trading above its 20 Daily moving average @ 0.8581, below its 50 Daily moving average @ 0.8681 , below its 100 Daily moving average @ 0.8752 and below its 200 Daily moving average @ 0.8749

The previous day high was 0.8595 while the previous day low was 0.8543. The daily 38.2% Fib levels comes at 0.8575, expected to provide support. Similarly, the daily 61.8% fib level is at 0.8563, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.855, 0.8521, 0.8498
• Pivot resistance is noted at 0.8602, 0.8624, 0.8654

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