EUR / GBP rises towards 0.8850, sees multi-month lows below 0.8820

• EUR / GBP rose even higher on Friday, but is still near recent multi-month lows.
• The pair has been weighed against the UK’s relatively quick vaccination efforts in January and amid delays in delivery of vaccines from the EU.

The EUR/GBP It has moved higher on Friday and is currently trading around 0.8850, unable to challenge the multi-month lows set earlier in the week below 0.8820. In the grand scheme of things, the pair is bullish on the day, still a surprising distance from multi-month lows, and from a technical perspective, a change in the pair is unlikely to materialize anytime soon; a downtrend linking the highs of January 22, 26, 28, and 29 continues to act as a constraint on price action, while a longer-term downtrend linking the lows of December 31, 14, 20 and January 21 continues to act as a floor for price action. As long as the EUR / GBP remains within this downtrend channel, its bearish bias will remain.

Following up on the news about the pandemic, Moderna is now also delaying deliveries to Italy, France and Poland. Meanwhile, the European Medical Agency has approved the use of the AstraZeneca vaccine.

On the other hand, preliminary GDP figures for Germany, France and Spain for the fourth quarter of 2020 surprised to the upside, offering limited respite for the euro against the USD and GBP, and German employment data for January was also stronger. than expected. Meanwhile, the additional comments from the ECB had a less moderate slant; Discussions of rate cuts have been sidelined in policy talks, an ECB source said, in an apparent effort to push back sources who said earlier in the week that markets were underestimating the prospect of a rate cut.

4 hour chart

Technical levels