EUR / GBP cuts losses and returns above 0.8900 after reaching lows in one month

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  • EUR / GBP remains under pressure but again bounces from below 0.8900.
  • The libar loses strength and cuts profits in the market.

The EUR / GBP cut losses in the American session and rose to 0.8918 after previously falling to 0.8882, the lowest level since November 23. The rebound came after GBP / USD broke below 1.3650.

The pound had been one of the best performing currencies among the main ones, taking advantage of the imposition that the statements of the governor of the Bank of England gave it on Tuesday, with respect to negative interest rates. The official showed a not so favorable position, which boosted the British currency.

He EUR / GBP intensified the decline, but is now trimming pstiff. It is rebounding once again after approaching the key 0.8860 level, which contained declines during the second half of 2020. The bearish bias continues to dominate but the pound needs to break through that strong support to enable an extension of the run.

If it continues above 0.8860, a rebound in the euro would be expected, which could initially target the resistance of 0.8970, before the 0.9020 zone, where the 20 and 100 day moving average converge.

Technical levels

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