- The recovery of the pound takes notice with the return of the EUR / GBP below 0.8600.
- The cross loses its bullish tone and begins to return to the previous range.
EUR / GBP is falling for the second day in a row, continuing to retreat after hitting a two-month high at 0.8657 on Wednesday. The cross just touched 0.8564, the low since Tuesday.
EUR / GBP rejected above 0.8600 and 200-day average
The relevant technical fact is being the return of the EUR / GBP below 0.8600, which in addition to being a round number, is key from a technical point of view, since if it gets clearly above, the euro would gain support for more rises . The rejection, for now, from levels above, points to a return to the range of 0.8545-0.8600; in case of losing 0.8545, the focus will go to 0.8400.
EUR / GBP rally found resistance at the 200-day moving average which is passing through 0.8645, close to the resistance of 0.8660.
Inflation on the rise in the Eurozone
The final reading of the PMIs for Europe showed a slight downward revision in those of the Eurozone compared to the preliminary estimate, while that of the United Kingdom went from 56.3 to 57.1. The spread may have contributed to the advance of the pound.
Another data that was known was that of inflation in the Eurozone for September, which showed a rise in the annual rate to 3.4%, higher than the 3.3% of the market consensus, the highest level since the end of 2008.
Technical levels
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