EUR/GBP falls back after hitting 3-month highs just below 0.8900

• The euro maintains its favorable trend against the pound but hits a strong barrier.
• EUR/GBP cannot break above 0.8900 on the first try.

The EUR/GBP is falling on Friday after rising for four consecutive days. The cross reached 0.8897, the highest level since the end of September and then changed direction. It is trading at the lows of the day, in the 0.8860 area.

The pullback implies that the euro is finding it difficult to extend the bullish run above 0.8900. The trend is still bullish. In case of extending the retracement, supports can be seen at 0.8815 (20-day moving average) and then 0.8780/0.8800 appears, which if broken with a close below, would leave the pound poised for a bigger rise.

The euro continues to receive support from comments from officials of the European Central Bank in favor of further increases in interest rates. In the United Kingdom, concerns about the economic situation generate a debate in the bank of england.

Regarding data, on Friday it was learned that in the Eurozone, industrial production in November recorded an expansion of 1%, higher than the 0.5% expected and which represents a recovery from the 1.9% contraction of the previous month. Compared to a year ago, it was 2% higher. The trade balance had a deficit of 15,200 million euros, less than the 34,000 million expected and the 28,000 million in October.

The german economy It had a growth of 1.9% in 2022, with GDP stagnating in the fourth quarter as a result of the war in Ukraine and the rise in energy prices, the statistics agency reported.

In it United Kingdom, the activity report in the factories showed a drop in activity in November, which was not surprising. Industrial production contracted 0.2% in November, and manufacturing 0.5%.

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