- EUR / GBP recovered momentum on Thursday and rose to test levels above the recent range.
- Rising COVID-19 cases and Brexit issues weighed on GBP.
The EUR / GBP cross rose to the upper end of a three-day-old trading range, in the region of 0.8570 during the European session. It recently hit 0.8572, the highest level since Monday. A confirmation above 0.8570 could strengthen the euro, exposing the highs of the week at 0.8593.
Following Wednesday’s decline, the cross regained positive lead on Thursday and was supported by the emergence of some selling around the British pound. Concerns about the spread of the highly contagious delta variant of the coronavirus in the UK turned out to be a factor behind the pound’s underperformance.
The UK has been reporting over 30,000 cases a day. This comes after a UK study that protection against two doses of the Pfizer or AstraZeneca vaccines begins to wane within six months. Apart from this, the Brexit problems acted like a headwind.
The tours in general in the market remain limited, pending the important speech of Jerome Powell, Chairman of the Fed, which could generate abrupt movements throughout the market and therefore also impact the EUR / GBP. Before this, on Thursday, the European Central Bank will publish the minutes of the last monetary policy meeting.
Technical levels
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