- Possibility of application of restrictive measures in the United Kingdom pulls the pound down.
- EUR / GBP hit a nearly four-week high at 0.8569, before reversing.
The EUR / GBP rose sharply from 0.8520 to 0.8569, reaching the highest level since November 11. The jump came after it emerged that the United Kingdom government could apply as soon as Thursday, restriction measures due to the increase in COVID cases.
A report stating that the government estimates an 85% chance that COVID Plan B will be implemented triggered a sharp drop in the pound. This would imply the return to the indication to work remotely and a vaccination passport for mass events. According to the information circulating this could be introduced as early as Thursday.
This generated a drop in the pound on all fronts. GBP / USD has just made new lows in over a year below 1.3200.
In the last few minutes, the EUR / GBP cut the rise and fell back to the 0.8535 area, where it is operating in the preview of the American session. The bias is still bullish.
If the euro continues to advance, it faces significant resistance around 0.8560 / 70, composed of horizontal levels and the 200-day moving average. A daily close clearly above it would be a medium-term bullish signal. If it continues below, the rises can continue to be seen as bullish corrections.
Technical levels
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