EUR / GBP retraces below 0.8450 and approaches last week’s lows

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  • The euro among the weakest on Monday, before the ECB meeting and after economic data.
  • EUR / GBP cannot assert above 0.8460 and retraces

EUR / GBP remains moving within a sideways range, having failed to sustain above 0.8465 and is approaching the recent lows zone. It is trading at the lowest level of the day at 0.8432, with its sights on the key support zone of 0.8420, which, if it gives way, could lead to a downward acceleration.

The decline occurs in a context of weakness of the euro, which is affected at the start of the week of the meeting of the European Central Bank (ECB). No concrete announcements are expected from the central bank, although there are several speculations about what could happen. The lack of certainty could make it an event that generates high volatility in the euro crosses.

The below-expected data from Germany’s expectations had a negative impact on the euro on Monday, which in addition to falling against the pound, also lost strength against the Swiss franc. Another factor against it is the decline in EUR / USD, which broke at 1.1615 / 20, a strong short-term support and is putting 1.1600 to the test.

In the UK, fuel prices have hit record highs; but for now without generating an impact on expectations. The pound remains relatively firm, with GBP / USD trading in neutral territory for the day around 1.3750 / 60.

Technical levels

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