- EUR/GBP remains positive for the week, reaffirming its rebound from its lowest in almost two weeks.
- Euro gains face major resistance at 0.8400.
The EUR/GBP is trading in neutral territory on Wednesday around 0.8385/90, after reaching three-day highs at 0.8401. The euro was unable to hold above 0.8400 and started trading in the 0.8395/0.8382 range.
The 0.8400 area is acting as a major resistance to the EUR/GBP rally which started from Monday’s two-week low at 0.8344. If it consolidates above said mark, the euro would be positioned for an upward extension. In the opposite direction, supports loom at 0.8382, 0.8376 (daily low) and 0.8355.
With regard to data, the UK inflation figures for January were released, which despite showing a drop in the CPI for January, the data were above expectations and the annual rate climbed to 5.5%, the most high in 30 years. The data did not give a great boost to the British currency. From the Eurozone, it was known that industrial production rose more than expected in December (1.2% against 0.3%), without having an impact on the markets.
The economic calendar for Thursday looks light for the Eurozone and the UK, but before that, the Federal Reserve minutes will be published on Wednesday which can generate a lot of noise in the market and therefore influence the EUR/GBP.
Technical levels
Source: Fx Street
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