EUR / GBP bounces from 0.8555 and rises to 0.8585, ending bearish streak

• Euro bounces warmly against the pound, in a day of corrections.
• EUR / GBP short streak of four days with falls, for the moment it achieves the second rise so far in March.

The EUR / GBP is rising modestly on Tuesday, on a day of widespread corrections from recent rallies, led by the dollar’s decline. The price of the cross bounced from the 0.8550 area, the lowest level in two weeks, and climbed to 0.8585. It is trading at 0.8575, up for the first time in five days.

The advance of the EUR / GBP occurs before a significant rebound of the EUR / USD which climbed to levels above 1.1900 and which occurred at a faster rate than the rise of GBP / USD.

It is a session where for now the correction is maintained in most of the assets. Treasury yields decline, lStock markets go up, and the dollar goes back. It may be due to a profit taking and the question is whether it will last or not.

In this context of correction, the euro loses ground against the Swiss franc, which among the most important in Europe, is one of those that rose the most, cutting with several days of being the weakest.

With regard to data, a new growth estimate for the Eurozone for the fourth quarter was released, which showed a drop of 5% (corrected from -4.9%). Attention is turning to Thursday’s meeting of the European Central Bank (ECB).

From a technical point of view, the downtrend remains strong, but in the short term, there are chances of an upward correction or consolidation ahead. Just a close above 0.8670 in EUR / GBP would significantly ease the downward pressure. Below 0.8550, February lows at 0.8535 will be exposed.

Technical levels