EUR / GBP climbs to 0.8625, continuing the rebound

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  • Euro rises against the pound for the second day in a row, continues to recover from lows in one year.
  • EUR / GBP is trading around 0.8600, clinging to Monday’s gains.

EUR / GBP extended the bullish run and it rose to 0.8625, the highest level since March 25. After this it fell back and towards 0.8600, where it is operating, maintaining the gains of Monday, when it had the best day since December.

The recovery of the euro against the pound comes after the EUR / GBP fell below 0.8500, the lowest level since February 2020. The rebound was driven by profit-taking and the EUR / USD rally.

When it comes to data, the final readings of the Markit PMI for services and integrated Eurozone showed an upward revision from 48.8 to 49.6, and 52.5 to 53.2 respectively. While that of UK services was revised down from 56.8 to 56.3.

The market on Wednesday turns to focus on what will be the minutes of the last meeting of the Federal Reserve, in the second half of the American session.

From a technical point of view, the EUR / GBP trend is still bearish, but in the short term, the rebound casts doubt on continuity. If the rebound continues, the next strong resistance is located at 0.8640 / 45 and then 0.8675. To the downside, now 0.8580 is the first support followed after 0.8530.

Technical levels

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