- EUR / GBP is rebounding modestly from this year’s lows.
- Mixed economic data from the UK was not enough to boost the pound.
The EUR / GBP cross managed to recover around 25 pips from daily lows and climbed to 0.8475. It is trading in positive territory, below the immediate resistance band of 0.8480 / 85.
Following Wednesday’s sideways movements and a drop to 0.8450, EUR / GBP found some support ahead of the low since February 2020 touched earlier this week. The UK data played against the pound, but without much of an impact.
The UK Office for National Statistics lowered its estimate for domestic GDP growth in May to 0.6% from an originally reported increase of 0.8%. This, to a greater extent, offset better-than-expected UK GDP growth figures for the reported month. In fact, the British economy grew 1% higher than the 0.8% expected.
That said, optimism about the downtrend of new COVID-19 cases and hints from the Bank of England about a potential cut in the buying program continued to act as a tailwind for the British pound. This, together with some weakness of the euro, keep EUR / GBP bounces limited.
Technical levels
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