untitled design

EUR/GBP rebounds from 0.8400, but remains significantly lower

  • EUR/GBP rises on Friday after a drop to the 0.8400 area.
  • The ECB’s reassuring talking points are helping to restore sentiment, but only slightly.
  • The BoE rate decision looms next week, but no rate moves are expected yet.

EUR/GBP fell to a new 22-month low on Friday, touching 0.8400 before finding a slight recovery that still leaves the pair struggling at the bottom of an accelerated three-month decline from April peaks above 0.8600. European political turmoil continues to weigh on the Euro as France heads into a two-round snap election on June 30 and July 7, and sterling traders prepare to await the Bank of England (BoE) next week.

European Central Bank (ECB) policymakers have been making the rounds on Friday, attempting to calm market sentiment as the Euro broadly underperforms as the worst-performing of the major currencies this week. French President Emmanuel Macron has dissolved the French government and pushed the country into an early election in an attempt to halt the rise of right-wing contender Marine Le Pen, who won a surprise victory in the European parliamentary elections.

With President Macron’s support evaporating from a population rebelling at the polls against unpopular fiscal policies, Le Pen’s platform of deep tax cuts and lower retirement ages has boosted the contender, who has failed in three attempts. separated by the French presidency since 2012, to try for the fourth time. Financial markets have become cautious about financial stability stemming from political upheaval in France, as populist measures aimed at buying votes could represent a significant deficit for the key European Union member.

On the Sterling side, GBP traders are preparing for the long wait for the UK Consumer Price Index (CPI) update scheduled for Wednesday, followed by a new BoE rate decision next Thursday. The BoE’s Monetary Policy Committee (MPC) last voted seven to two to keep rate cuts at 5.25%, and while no rate moves are expected, investors will be watching for any further shift from ‘hold’ votes. ‘ to ‘trim’.

EUR/GBP technical outlook

EUR/GBP fell to a new 22-month low on Friday, testing the 0.8400 area before finding intraday technical support and bouncing towards the 0.8440 region. Market momentum is firmly tilted to the bearish side with the pair falling -1.2% from the June peak near 0.8540.

The pair is on track to close lower for the fifth consecutive week, and the weakness has dragged EUR/GBP down -2.85% from the 2024 high. A bullish recovery towards the 200-day EMA at 0.8460 will likely return on the downside, and sellers will definitely look to push the pair back below the 0.8400 area.

EUR/GBP daily chart


Latest price today 0.8436
Today’s daily change 0.0023
Daily change % today 0.27
Today’s daily opening 0.8413
SMA20 Journal 0.85
SMA50 Daily 0.8545
SMA100 Journal 0.8547
SMA200 Journal 0.8598
Previous Daily High 0.8458
Previous Daily Low 0.8413
Previous Weekly High 0.8536
Previous Weekly Low 0.8489
Previous Monthly High 0.8621
Previous Monthly Low 0.8484
Daily Fibonacci 38.2% 0.843
Daily Fibonacci 61.8% 0.8441
Daily Pivot Point S1 0.8398
Daily Pivot Point S2 0.8383
Daily Pivot Point S3 0.8353
Daily Pivot Point R1 0.8443
Daily Pivot Point R2 0.8473
Daily Pivot Point R3 0.8488

Source: Fx Street

You may also like

Where will the price of Bitcoin go?
Top News

Where will the price of Bitcoin go?

Crypto community members have given their Bitcoin forecast amid Joe Biden’s withdrawal from the 2024 presidential race. We tell you

Get the latest

Stay Informed: Get the Latest Updates and Insights


Most popular