- The EUR / GBP recovered ground lost in the last hours, still close to the low of the year.
- GBP / USD’s drop to fresh daily lows below 1.3750 weighed on the pound.
The EUR / GBP is trading above 0.8540, in the zone where it closed on Monday after recovering after falling to 0.8522. The rise was still not enough to remove the downward pressures, and the price remains close to the 0.8500 / 05 floor.
The EUR / GBP rebound came as GBP / USD broke down to fresh daily lows below 1.3750. Prior to this, the pound had been one of the best performing currencies in the market on Tuesday. The advancement of vaccination in the UK and the impact this would have on the economy remains a key support.
In the EurozoneThere is the opposite situation, where vaccination progresses more slowly and announcements of restrictions on circulation are increasing.
From a technical point of view, the key support for EUR / GBP has become the 0.8500 / 05 zone, which could be exposed if there is a break below 0.8520 / 25. To the upside, a rally above 0.8560 would remove some of the very short-term downward pressures.
Technical levels
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