- EUR / GBP remains stable after closing above 0.90 on Monday.
- Restrictions due to the coronavirus in the UK weigh on the British pound.
The British pound is losing ground to its European counterpart, pushing the cross EUR / GBP on the rise, as the UK imposes tighter restrictions to control the spread of the new variant of the coronavirus.
With the country’s health system facing the risk of being overwhelmed by the new variant, UK Prime Minister Boris Johnson ordered a new national lockdown on Monday.
“Everyone in England should stay home, except for permissible reasons, during a new coronavirus lockdown that is expected to last until mid-February, “Johnson said.
The strictest restrictions overshadowed Brexit optimism and vaccines, weighing on the pound sterling. The coin is still under pressure at the time of writing. EUR / GBP jumped from 0.8940 to 0.9018 on Monday and is currently trading near 0.9030, up 0.15% on the day.
However, additional gains may remain elusive as the EUR / USD appears limited.
The EUR / GBP 1 hour chart shows that the pair is struggling to capitalize on the breakout above a confirmed downtrend line on Monday.
EUR / GBP technical levels
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
