- The euro among the currencies that rise the most on Monday.
- “Hawkish” comments from ECB officials continue.
- EUR/GBP bounces from month lows, after reaffirming support at 0.8570.
EUR/GBP is having one of the best days so far in November buoyed by a firmer Euro and also having found support again in the area around 0.8570. The cross rose to 0.8675, the highest level since Wednesday.
Leaving critical zone
The euro is among the best-performing currencies on Monday boosted by words from officials at the European Central Bank (ECB). Among them, Klass Knotthe president of the central bank of the Netherlands, said the ECB faces the risk of not tightening monetary policy enough to deal with inflation.
The expectations of an ECB hawkish they are playing for the euro on Monday. Added to this, in particular, is the technical rebound in EUR/GBP, after having once again found support at 0.8570.
The 0.8570 zone contained the falls twice in October and now in November. It has become the key level, which if broken would leave the pound on course for further gains, with a target of 0.8500.
The current rebound is ahead of the 20-day moving average that is at 0.8690, a level close to 0.8700 and where there is also a horizontal resistance level. In the event of a clear close above, the euro could gain support to extend the bullish run. The next firm resistance is seen at 0.8770.
technical levels
Source: Fx Street
I am a writer for World Stock Market. I have been working in finance for over 7-8 years, and I have experience with a variety of financial instruments. My work has taken me to Japan, China, Europe, and the United States. I speak Japanese and Chinese fluently.
