- Euro remains far from the lows in months against the pound.
- British currency clings to recent gains, but rally loses steam.
The EUR / GBP is rising less than 20 pips on Thursday, in a day of limited travel in the currency market. The price reached the highest level of the day at 0.8775. It stays near the peak of the day, moving sideways.
The rally of the pound has lost steam, but still the currency is seen according to several analysts with the possibility of continuing to outperform. This is based on the Bank of England guidelines to rule out negative interest rates in the short term and in the advance of vaccination in the United Kingdom.
Technical overview
The EUR / GBP still faces a dominant downtrend but is in consolidation mode in the short term, without being clear where the next exit will be. To the upside, resistances are seen at 0.8780 and then 0.8800. A return above 0.8800 would ease downward pressures, while above 0.8860 there could be talk of a possible bottom at 0.8740 (low of February 5).
To the downside, immediate intraday support is seen at 0.8765. Then the floor of the week appears at 0.8750, which if broken would increase the bearish moment, enabling a test of the recent lows.
Technical levels
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