FxWirePro: EUR/GBP rallies over 1% amid rising bets for jumbo ECB rate hikes

Chart - Courtesy Trading View 

EUR/GBP spiked over 1% and was trading at 0.8888 at around 16:00 GMT, breaks past 20-DMA.

The pair gained strong positive traction amid rising bets for additional jumbo interest rate hikes by the European Central Bank (ECB) in the coming months.

Signs of rebounding inflation in France, Spain and Germany - the Eurozone's three biggest economies boost the single currency.

German inflation unexpectedly accelerates in February pushing up European Central Bank rate hike expectations. Spain and France - also posted unexpected rises.

Further, Germany’s Unemployment Change rose by 2K in February and the Unemployment Rate held steady at 5.5% in the same period.

Germany final Manufacturing PMI came at 46.3 9 (from 47.3), while in the broader Euroland, the final Manufacturing PMI matched the advanced print at 48.5.

On the other side, the British pound subdued after Bailey says 'nothing decided' on future rate hikes.

Support levels - 0.8825 (200H MA), 0.8836 (21-EMA)

Resistance levels - 0.8928 (17th Feb high), 0.8951 (Upper BB)

Summary: EUR/GBP has bounced off daily cloud support with a Dragonfly Doji formation. Price action has retraced above 200H MA, scope for further gains.