- The pound among the top performers on Thursday also gains against the US dollar.
- EUR / GBP corrects lower after rising for four consecutive days.
The EUR/GBP it is falling on Thursday, correcting lower from the weekly high it reached on Tuesday at 0.8645. It recently bottomed at 0.8589, the lowest level in three days. At time of writing, it is hovering around 0.8600, where the 20-day moving average is located.
The euro is ending a four-day winning streak against the pound. With EUR / USD trading at monthly lows below 1.1800, the euro could weaken further. At the same time, GBP / USD is still in positive territory for the day.
The deterioration in market sentiment is not affecting the pound, which was among the best performers on Thursday. A conciliatory tone between the UK and the European Union on vaccine distribution appears to be helping the coin. European Union leaders are meeting to discuss vaccination, not only about exports, but also about how to speed up the process.
From a technical perspective, the EUR / GBP remains in a medium-term downtrend. In the short term, it was correcting higher. The move to the upside lost momentum after approaching 0.8650 and then failing to sustain above 0.8630. If the euro recovers levels above 0.8630, it could strengthen further. On the other hand, a consolidation below would suggest a possible end to the correction, favoring a consolidation between 0.8630 and 0.8575. Critical support on the downside is seen at 0.8545 / 50 (March 9, 10 and 11 lows).
Technical levels
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