EUR / GBP stabilizes after setting new lows in almost a year at the 0.8635 area

• Euro manages to find support against the pound, although the downtrend of the EUR / GBP remains firm.
• Lagarde and Johnson’s words are awaited.

The EUR / GBP is trading without significant changes on Monday, after having the lowest week end in practically a year on Friday. The price hit a new low in months at 0.8635 at the start of the week and then rebounded to the 0.8660 area. Since then it has remained laterally in that range.

The dominant trend is still clearly downward, although in the very short term, consolidation appears. The 0.8630 / 40 zone is becoming an important support and the protecting zone at 0.8600. To the upside above 0.8660, the next resistance is around 0.8680.

From the fundamental point of viewl The pound continues to be supported by expectation and confidence in the vaccination process in the UK, compared to the rest of Europe. Today Prime Minister Boris Johnson will make announcements about it.

In Europe the word of the president of the European Central Bank (BCE) in just under an hour. In any case, his words may have few surprises but it will be an event to take into account.

Stock markets are falling in the world, while traders are also watching what happens in the US bond market The fall in equity markets may affect the pound more than the euro, offering some EUR / GBP support.

Technical levels