- The euro tries to stop the fall against the pound.
- EUR / GBP remains with a marked downtrend.
EUR / GBP is posting a small gain on Wednesday, having had the lowest close since May last year. The price returned above 0.8800 and climbed to 0.8822. It has been operating laterally for hours, consolidating, still very close to Tuesday’s 0.8794 floor.
The inflation data for the Eurozone was above expectations but did not help the euro. Neither did the acceptance of Mario Draghi, to form a government in Italy. Issues that, while they may not have boosted the euro, may support it.
In the United Kingdom, the final reading of the services PMI was released, which stood at 39.5 in January, above the previous and expected reading of 38.8. The focus is on the statement that the Bank of England will deliver on Thursday, which will include the decision and the guidelines of monetary policy.
From a technical point of view, EUR / GBP remains firm with a downtrend in the short term. A rise above 0.8860 would remove pressures in that direction. For now the key support is around 0.8800 and a confirmation below 0.8800, would enable further lows with a possible target at the next strong support at 0.8765 / 60.