EUR/GBP Exchange Rate Surges Past 0.8900 as Buyers Maintain Solid Gains of 1.06% Amid US Federal Reserve News

The Euro to Pound exchange rate jumped to a three-week high of 0.8925, breaking through a key psychological barrier of 0.8900. Sellers were unable to push it over the yearly high of 0.8978, while buyers were able to keep gains at a healthy 1.06%. The current exchange rate for the Euro to British Pound is 0.6918.

The Fed chair, Jerome Powell, said that interest rates will rise higher than expected, and that even larger rate hikes were being contemplated, which encouraged the rally. Because of this, the EUR/GBP pair was able to push over a month-long resistance trendline and head higher, potentially testing the 0.8900 mark.

The Euro to Pound exchange rate has to rise above 0.8928, the high reached on February 17. If it does, it might potentially test the 0.9000 level after that before moving on to the yearly high at 0.8978.

Another possibility, however, has the EUR/GBP finding support between 0.8920 and the 0.8900 level before possibly dropping to the 20-day EMA at 0.8854.