- The euro cuts Monday’s gains against the pound.
- EUR / GBP remains in the recent range.
The EUR / GBP rose hours ago to test recent highs near 0.8550 but quickly reversed direction and weakened.or. It recently hit a low for the day at 0.8506 and is trading 0.8520 in negative territory for the day, staying within the recent range.
There was no relevant data so far this day, in a week where the volume is decreasing. Later on Tuesday, the December preliminary European Union consumer confidence report will be published.
The market seems to continue digesting what the meetings of the European Central Bank (ECB) and the Bank of england (BoE) last week. The rise in the BoE interest rate was not enough to push the pound consistently.
The other key issue continues to be Ómicron and the response of the various governments throughout the region. With more announcements of confinement there are fears for the impact on the economy. Furthermore, the issue of Brexit remains among the headlines.
Key level at 0.8560
Around 0.8550 / 60 a zone of horizontal resistance can be found which is reinforced by the 200 day SMA. This implies that the break with subsequent confirmation above it would be a positive factor for the euro pointing to more rises and a possible test at 0.8600.
In the opposite direction, a close of the EUR / GBP below 0.8480, would leave the pound on the way to more gains.
Technical levels
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