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%.

technical levels

EUR/GBP

Overview
Today’s last price 0.8861
Today Daily Change -0.0024
Today Daily Change % -0.27
Today daily open 0.8885
trends
Daily SMA20 0.8811
Daily SMA50 0.8723
Daily SMA100 0.8716
Daily SMA200 0.8596
levels
Previous Daily High 0.8896
Previous Daily Low 0.8832
Previous Weekly High 0.8875
Previous Weekly Low 0.8783
Previous Monthly High 0.8877
Previous Monthly Low 0.8547
Daily Fibonacci 38.2% 0.8872
Daily Fibonacci 61.8% 0.8857
Daily Pivot Point S1 0.8846
Daily Pivot Point S2 0.8808
Daily Pivot Point S3 0.8783
Daily Pivot Point R1 0.8909
Daily Pivot Point R2 0.8934
Daily Pivot Point R3 0.8973

Source: Fx Street

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