EUR / GBP bounces after testing weekly lows at 0.8900 area, still under pressure

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  • The pound is again losing momentum against the euro near a key technical level.
  • EUR / GBP bearish bias remains, but consolidating on Thursday.

EUR / GBP fell to 0.8887 on Thursday, just above Wednesday’s low and then bounced back to the 0.8900 area, where it is trading, unchanged from yesterday’s close. The short-term trend continues in favor of the pound.

The UK currency remains strong, but to enable further lows it will have to break first 0.8885, and then the strong barrier of 0.8860, which halted declines in the second half of 2020. A confirmation below this last level would leave the EUR / GBP ready to extend the mid-term decline.

At short term, at 0.8925 / 30 there is a resistance to consider that if overcome, it would ease the downward pressure on the euro. The next one is at 0.8950.

From a fundamental point of view, the pound has lost some strength after rising for three days in a row against the euro. In the United Kingdom, coronavirus cases remain a focus of attention and today there will be no relevant economic data. The minutes of the last meeting of the European Central Bank will be published shortly, which should not have a great impact on the euro.

Technical levels

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