EUR / GBP down from week highs, slightly up around 0.8615-20

• EUR / GBP gained traction for the fourth day in a row and rebounded even further from its month-long lows.
• Post-Brexit issues between the UK and Ireland weighed on the British pound and remained favorable.
• The sustained sale of USD benefited the shared currency and provided an additional boost to the crossover.

The crossing EUR/GBP it maintained its bid tone through the middle of the European session and spiked to a week high around the 0.8630 region in the last hour, although it fell a few pips thereafter.

The cross was based on last week’s bounce from the month-long lows around the 0.8560 region and rose for the fourth consecutive session on Friday. Post-Brexit trade issues between Britain and Ireland turned out to be a key factor behind sterling’s relatively underperformance and provided a modest rise to the EUR / GBP cross.

On the other hand, the shared currency was supported by the prevailing selling bias around the US dollar, which continues to be weighed down by the dovish Fed expectations. That said, the rise appears limited amid optimism about the third stage of trading. the easing of lockdown measures in Great Britain and an optimistic outlook for the UK’s economic recovery.

The third planned stage of easing in the UK began on Monday. Among other measures, people will be able to hug each other again and pubs and restaurants will be able to serve customers indoors. The overseas travel ban was also lifted and replaced by new rules, although concerns over the rapidly expanding Indian variant remained.

This, in turn, continued to act as a tailwind for the British pound and kept any further gains limited to the EUR / GBP cross at least for the time being. Therefore, it will be prudent to wait for some solid follow-up buying before traders begin to position themselves for any further appreciation moves amid the absence of relevant economic releases to move the market.

Technical levels