- Risk aversion climate affects the pound more than the euro.
- Technical factors give EUR / GBP more momentum.
- Cruce moves away from the recent floor and aims for more raises.
The EUR / GBP is rising significantly on Friday, in a combination of the context in the financial markets and technical factors. The bad mood among investors affected the pound while the break of 0.8430 strengthened the bullish journey of the cross.
After moving for several days in the range comprised by the 0.8380 and 0.8430 floor, EUR / GBP broke higher and jumped to 0.8476, reaching the highest level since November 16. Very close to that level is the 20-day moving average.
From the high, the EUR / GBP trimmed gains and is trading at 0.8460, still firm and well above the key resistance at 0.8430. The 0.8470 zone is now the key level and a close above it would point to an extension in the recovery.
The pound was among the hardest hit, even as stocks on the continent are falling significantly. The IBEX loses 4%, and the FTSE 2.80%. Expectations of an early monetary adjustment by the Bank of england have been softened, making the pound look less attractive.
Technical levels
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