EUR/GBP tops 0.8700 after BoE denial and amid Truss policy weakness

  • The pound is again the worst performing currency in the G10.
  • Doubts about the stability in the position of Liz Truss.
  • Bank of England denies postponement of start of quantitative adjustment.

The EUR/GBP broke above 0.8680 and rose to 0.8731, the highest level since Thursday. It then pulled back slightly and is trading at 0.8705/10. The advance is fueled by weakness in the pound.

The British currency is again under pressure and is one of the worst on Tuesday in the group of G10 affected by the news of the United Kingdomwith rumours, speculation and political weakness.

On Monday, the government of Prime Minister Liz Truss, announced that it will reverse most of the measures announced on September 23. Then the new finance minister, Jeremy Hunt He said there are still tough decisions to be made.

The Bank of England recently denied information from the Financial Times that mentioned that there was going to be another delay in the start of the sovereign bond sale program. This was denied by the BoE and led to more gilt casualties.

With regard to data, a slight improvement was known in the ZEW economic sentiment survey for the Eurozone and Germany. The data did not have a major impact and did not generate surprises.

Should it break above 0.8730, the next EUR/GBP resistance is seen at the 0.8750 area and then above it at 0.8810. In the opposite direction, at 0.8675 there is significant support protecting the 0.8610 area. A close below the latter would enable further gains for the pound.

Technical levels

EUR/GBP

Panorama
Last Price Today 0.8721
Today’s Daily Change 0.0064
Today’s Daily Change % 0.74
Today’s Daily Opening 0.8657
Trends
20 Daily SMA 0.8782
50 Daily SMA 0.8649
100 Daily SMA 0.8582
200 Daily SMA 0.8487
levels
Previous Daily High 0.8696
Previous Daily Minimum 0.8578
Previous Maximum Weekly 0.8867
Previous Weekly Minimum 0.8609
Monthly Prior Maximum 0.9254
Previous Monthly Minimum 0.8566
Daily Fibonacci 38.2% 0.8623
Daily Fibonacci 61.8% 0.8651
Daily Pivot Point S1 0.8592
Daily Pivot Point S2 0.8526
Daily Pivot Point S3 0.8474
Daily Pivot Point R1 0.8709
Daily Pivot Point R2 0.8761
Daily Pivot Point R3 0.8827

Source: Fx Street

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