EURGBP breaks above 0.8800 and hits four-week highs

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  • Pound is under pressure, cable falls below 1.1400.
  • EURGBP is heading for its highest daily close since October 11.

EURGBP continued to rise during the American session and reinforced the recovery after breaking above 0.8800. The cross reached a high of 0.8820, reaching the highest level since October 11.

The pound is one of the worst performing currencies in the G10 on Wednesday. The currency remains vulnerable after two months of political and economic tensions in the UK. The cautious tone in the financial markets does not help the pound. The Dow Jones falls 0.87% and the Nasdaq 1.25%.

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GBPUSD’s drop below 1.1400 adds to the general decline in the pound. At the time of writing, cable is trading at 1.1370, the lowest level in two days, down more than 150 points.

“Over the coming weeks, we expect sterling investors to focus on the impact of the 17th November autumn statement, Prime Minister Sunak’s ability to hold the Conservative party together, the growth/recession outlook for the UK and Bank of England interest rates.We expect that protocol related issues (for Northern Ireland) will only have a clear impact on sterling as the corresponding deadlines approach.We are not convinced yet modify our bearish view on the pound and maintain a 3-month forecast of 0.89 EUR/GBP,” Rabobank analysts said.

Technical levels

EUR/GBP

Overview
last price today 0.8797
daily change today 0.0066
Today’s daily variation in % 0.76
Daily opening today 0.8731
Trends
daily SMA20 0.8683
daily SMA50 0.872
daily SMA100 0.8603
daily SMA200 0.8514
levels
Previous daily high 0.8744
Previous Daily Low 0.8692
Previous Weekly High 0.8785
Previous Weekly Low 0.8572
Previous Monthly High 0.8867
Previous Monthly Low 0.8572
Daily Fibonacci of 38.2% 0.8724
Daily Fibonacci of 61.8% 0.8712
Daily Pivot Point S1 0.87
Daily Pivot Point S2 0.867
Daily Pivot Point S3 0.8648
Daily Pivot Point R1 0.8753
Daily Pivot Point R2 0.8774
Daily Pivot Point R3 0.8805
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Source: Fx Street

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