FxWirePro: EUR/GBP edges higher from session lows, speculations for more jumbo rate hikes by ECB limit downside

Chart - Courtesy Trading View 

Spot Analysis:

EUR/GBP was trading 0.02% lower on the day at 0.8808 at around 09:30 GMT.

Previous Week's High/ Low: 0.8924/ 0.8819

Previous Session's High/ Low: 0.8863/ 0.8798

Fundamental Overview:

Data released by the UK Office for National Statistics showed that the number of people claiming unemployment-related benefits fell by 11.2K in February, less than 12.4 decline expected. 

The jobless rate held steady at 3.7% during the three months to January as compared to a modest uptick to 3.8% expected.

Data is strong enough to allow the Bank of England (BoE) to hike interest rates again later this month, which continues to underpin the British Pound.

On the other side, speculations for more jumbo rate hikes by the European Central Bank (ECB) could lend some support to the Euro.

Traders might also refrain from placing aggressive bearish bets ahead of the ECB monetary policy meeting, scheduled on Thursday and the BoE meeting next week.

Market sentiment remains sour following the collapse of Silicon Valley Bank and the New York's Signature Bank despite the U.S. government's efforts to shore up systemic confidence.

Technical Analysis:

- EUR/GBP trades below 55-EMA and with the daily cloud

- Momentum is bearish, Stochs and RSI are biased lower

- GMMA indicator shows major trend is neutral, while minor trend has turned bearish

- MACD confirms bearish crossover on signal line and ADX supports weakness

Major Support and Resistance Levels:

Support - 0.8763 (Cloud base), Resistance - 0.8820 (55-EMA)

Summary: EUR/GBP poised for further downside. Break below cloud to drag the pair lower. Bearish invalidation only above daily cloud.