- Euro is holding firm against the pound with limited gains for now.
- EUR/GBP faces strong resistance in the 0.8900 zone.
- Euro continues to be favored by ECB expectations.
The EUR/GBP it is rising on Monday after finding support above 0.8845. The cross reached a daily maximum at 0.8878 and is trading around 0.8865, with a bullish tone. On Friday the price reached 0.8896, the highest level since September.
The cross’s rises are being limited by the 0.8900 zone, which acts as key resistance. In case of breaking it, the euro would be ready to extend the bullish run. At 0.8885 there is intermediate resistance.
In the short term, if there is a downward correction, the first support appears at 0.8855, followed by the daily low and on Friday at 0.8845. Critical support is at 0.8770 as a break below will point to further gains for the pound.
The euro continues to be supported by the divergence of expectations between the European Central Bank yeahthe Bank of England. ECB officials continue to point to a continuation of significant interest rate hikes, while at the BoE there are doubts about the next steps.
The common European currency has even managed to rise considerably against the Swiss franc in the previous days. EUR/CHF hit as high as 1.0097 on Friday, the highest since June before falling back to parity.
technical levels
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
