- Euro fails to find support against the pound.
- EUR / GBP at lows since February 2020.
The EUR / GBP returned to the downside after a brief period of consolidation, and fell to 0.8452, reaching the lowest level since February 2020. The price remains in the area of the lows with the bearish tone intact.
The technical outlook, despite showing some signs of oversold, continues to point to the downside. Last week’s close had already been the lowest in months and clearly below 0.8500. The next strong support below 0.8450 appears at the 0.8400 and 0.8380 area. A return above 0.8500 could ease downward pressures.
Euro under pressure
The euro is among the weakest on Tuesday, partly due to EUR / GBP. Eurozone data did not help. A drop above the expected in the ZEW index was known in Germany. The expectations index went from 63.3 to 40.4, the lowest since November; and current conditions improved to 29.3 from 21.9, both below market consensus.
To highlight the common currency is that it continues with the advance against the Swiss franc. EUR / CHF continues to bounce from monthly lows and is already above 1.0800.
The pound for its part is shown with a certain tone in favor. Key data from the UK will arrive on Thursday with growth and industrial production figures.
One factor to consider is the proximity of the EUR / USD in the area of 1.1700 / 05, which is pointed out as an important support. The breakdown of that zone could lead to widespread declines in the euro, dragging the EUR / GBP further down.
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