- The euro lost ground for the second day against the pound.
- EUR / GBP retracement after failing to reach the 200 day moving average at 0.8585.
- Fall below 0.8505 would intensify the bearish tone.
The EUR / GBP is falling for the second day in a row on Tuesday and in the last hour it broke the range that had been in force since the American session on Monday, reaching 0.8518, the lowest level since last Thursday. The price remains close to the minimum, with a bearish intraday tone.
The pullback started after the EUR / GBP rally hit the 200-day moving average and the 0.8600 area, two major resistances that could not be broken. This favored profit taking and a downward correction.
If the decline extends below 0.8505, it would lead to EUR / GBP losing even more strength and heading lower towards 0.8460, the next major support. Conversely, a return above 0.8550 could mark the end of the correction.
After the BoE focus on data and others
The pound is leaving behind the negative moment that followed last week’s meeting of the Bank of England. The currency is making up lost ground on all fronts.
In terms of data, a mixed reading of Germany’s ZEW survey stood out on Tuesday, showing an unexpected advance in the economic sentiment index, but also a greater decline than the consensus in the current situation.
Both the Governor of the Bank of England (BoE), Andrew Bailey and the president of the European Central Bank (ECB), Chirstine Lagarde, will give speeches at different events on Tuesday, but they are not expected to comment on monetary policy.
Technical levels
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