- The dominant trend remains bearish in EUR / GBP but the euro gets a breather.
- Next resistance at 0.8380, key support at 0.8330.
EUR / GBP is advancing on Wednesday, trading in the zone of daily highs around 0.8360, after having fallen in the Asian session to 0.8331, the lowest level since February 2020.
The advance of the pound against the euro takes a breather on Wednesday and the EUR / GBP shows the first gains after falling for two days in a row and in ten of the last eleven days. The market allocation of greater possibilities of another rise in the interest rate on the part of the Bank of england February is the key factor behind the UK currency rally.
The rise of the EUR / GBP occurs despite the fact that it was known that a small downward revision in the index Markit Eurozone Services PMI December, which was located at 53.1, below the 53.3 of the preliminary reading. The producer price index for the Eurozone and the retail inflation index for Germany will be published on Thursday.
EUR / GBP dominant trend remains bearish and the current rise represents a correction. The next strong resistance is seen at 0.8380. A rally above can relieve pressure to the downside. Then 0.8425 will follow. In the opposite direction, the break at 0.8335 would expose the next strong support at 0.8295 / 0.8300.
Technical levels
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