EUR/GBP soars to 0.8850 zone, high since January 2021

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  • The pound suffers a historic drop on Friday.
  • British bonds also fall significantly.
  • EUR/GBP is above 0.8800 and GBP/USD is close to 1.1000.

The EUR/GBP soared on Friday in the face of a risk-off climate and a general slump in the British pound. The cross climbed to 0.8849, the highest level since January 2021. It then moderated gains and is trading at 0.8810.

The advance was mainly due to a collapse in the British pound. The presentation of a plan to reduce taxes, to be financed with new debt in the United Kingdom, caused bonds and the pound, which had already been under pressure, to fall. GBP/USD hit new all-time lows and tumbled to 1.1017.

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The other negative factor for the British currency is the climate of risk aversion in the markets, which are registering significant falls. EUR/GBP gains have provided some relief to the decline in EUR/USD and EUR/CHF.

Should the EUR/GBP correction extend, next support is at 0.8785, followed by 0.8725. To the upside, the 0.8850 area is the level to break to enable further upside: this is medium-term resistance, which may be difficult to break.

Technical levels

EUR/GBP

Overview
Today last price 0.882
Today Daily Change 0.0078
Today Daily Change % 0.89
Today daily open 0.8742
trends
Daily SMA20 0.8663
Daily SMA50 0.8531
Daily SMA100 0.8535
Daily SMA200 0.8455
levels
Previous Daily High 0.876
Previous Daily Low 0.8692
Previous Weekly High 0.8784
Previous Weekly Low 0.8626
Previous Monthly High 0.8653
Previous Monthly Low 0.834
Daily Fibonacci 38.2% 0.8734
Daily Fibonacci 61.8% 0.8718
Daily Pivot Point S1 0.8703
Daily Pivot Point S2 0.8663
Daily Pivot Point S3 0.8634
Daily Pivot Point R1 0.8771
Daily Pivot Point R2 0.88
Daily Pivot Point R3 0.884

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Source: Fx Street

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