EUR/GBP holds firm above 0.8815, rises for fourth day in a row

• The euro continues to be propped up by the ECB’s expectation.
• EUR/GBP biased to the upside in the short term, could look at 0.8900 again.

EUR/GBP is rising for the fourth day in a row on Wednesday. Hours ago it rose to 0.8851, the highest level in a week and then fell back, finding support at 0.8815.

The euro continues to receive support from comments from European Central Bank (ECB) officials in favor of continuing to raise interest rates significantly beyond February. This outlook was in turn bolstered by the latest Eurozone PMI data which came out on Tuesday and came in above expectations.

On Wednesday, the results of Germany’s ZEW survey were released showing an improvement in the expectations index from -42.8 to -40, and an unexpected drop in the current situation index from 94.4 to 94.1.

Again above the 20-day average

The EUR/GBP advance took the price above the 20-day moving average, which could now become the first major support at the 0.8810/15 zone. The rises face strong resistance at 0.8855/60, which if breached would put 0.8900 back on the radar.

technical levels