- Dollar rebound puts pressure on Euro, and pushes EUR / GBP down.
- Retracement still fails to bring price clearly below key 0.8640 zone.
The EUR / GBP is falling on Wednesday, having risen in the previous two days and after climbing to 0.8671, the highest level in two weeks. The cross marked lows for the day at 0.8629, and it is trading around 0.8640.
Some weakness of the euro, triggered the falls in the EUR / GBP. This event manifests itself in that the EUR / USD is at the level of the day’s lows below 1.2230, while the GBP / USD is barely in positive territory above 1.4150.
The pound was favored by the optimistic outlook for the British economy, with the gradual end of restrictions due to COVID-19 and was not affected by political issues in the United Kingdom. In former adviser to Prime Minister Johnson claimed that the government failed the public and did not realize the seriousness of the situation, until it was too late.
From a technical point of view, one of the keys for the next few hours on the EUR / GBP will be to see if it affirms above or clearly below 0.8640. In case of doing so at lower levels, the pound could extend the correction, while if it were to rise, the euro would maintain a firm short-term bullish tone.
Technical levels
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