- The pound continues to outperform the rest of its main competitors.
- EUR / GBP falls for the fourth week in a row.
The EUR / GBP did not stop the decline and on Thursday it reached 0.8638, reaching the lowest level since March 2020. After this it bounced and climbed to the 0.8650 area. The euro is on track to have the fifth consecutive decline against the pound.
The UK currency is being the best performing on Thursday and in the week in the group of the most traded. The growing expectation that the United Kingdom will advance first than other countries in exiting the restrictions on activities due to the coronavirus, as a result of its vaccination process remains an important factor.
In turn, while the EUR / GBP continues to decline, the pound receives extra support from the GBP / USD rally which is approaching 1.40. In other words, both the expectations and technical aspects continue to favor the bearish outlook of the EUR / GBP. Technical indicators are already showing signs of oversold, but there are no signs of possible bullish corrections yet.
It was recently known that consumer confidence in the Eurozone improved in February, but the data had no impact on the market. Traders are closely following the US bond market and Wall Street where stocks are accelerating the decline, which could offer some limit to the strength of the pound.
Technical levels
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