EUR / GBP recovers slightly, remains below 0.8600

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  • Euro regains a small part of the ground lost against the pound.
  • EUR / GBP remains close to the May floor, with a bearish bias.

The EUR / GBP fell hours ago to 0.8576, hitting the lowest level in two weeks, then bounced back to 0.8596. TFollowing the sharp decline on Thursday, the cross continues with a bearish bias and is operating near the lowest for the month.

The pound rose sharply on Thursday on comments from a Bank of England official, who spoke about possible adjustments to monetary policy. In this line, Andy Haldane, the chief economist of the BoE, spoke today, saying that the central bank should prepare to reduce its stimuli.

Another supporting factor was market optimism that gave GBP / USD more momentum than EUR / USD. The Eurozone consumer confidence report released on Friday showed higher than expected numbers which helped the euro. The common currency is also rising against the Swiss franc.

0.8580 zone matters

The current EUR / GBP bias is bearish but close to a very important support zone around 0.8580.. A close below this level would enable more lows, targeting next support at 0.8540 / 45.

If it manages to stay above 0.8580, the euro could point to a consolidation. At 0.8620 is the 20-day moving average, and a horizontal resistance zone. Higher up, around 0.8665, a short-term bearish line passes which, if broken, would negate the bearish bias.

Technical levels


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