- Pound weakness boosts EUR / GBP.
- The cross returns to the 20 average, after finding support above 0.8500.
The EUR / GBP is rising for the second day in a row on Monday and just surpassed 0.8550, reaching highs in almost a week. The price is also back at the 20-day moving average.
After breaking 0.8545, EUR / GBP rose to 0.8555, the highest since July 27. It remains in the maximum zone with the bullish tone intact, given a weakness of the pound in the market. In the last hours, the appetite for risk deteriorated and played in favor of the euro. Technical factors can also be added to the advance.
The EUR / GPBP rebound brought the price back to the 20-day moving average. It also marks that 0.8500 is still a strong support, from where the euro is bouncing. Even so, a descending channel still stands. A return above 0.8600 would leave the cross strengthened.
Data without surprises
Final European PMI readings showed no surprises. There was a revision to the preliminary figures in both directions throughout the Eurozone, highlighting the reading of 65.9 from Germany; while that of the region was covered from 62.6 to 62.8. In the UK, as expected, there were no changes and it was 60.4.
One of the events that can generate the most attraction for the crossing this week will be the meeting of the Bank of England. The statement with the decision will be known on Thursday. Although no changes in monetary policy are expected, projections, votes and minutes can be key.
Technical levels
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