- EUR / GBP is still unable to sustain above 0.8600.
- The pound appreciated against the euro in the last hour, hitting two-day highs.
The EUR / GBP fell back after testing weekly highs in the 0.8610 region and fell to 0.8570, marking a new low for the day. At the same time GBP / USD jumped to daily highs.
The cross is still unable to hold firmly above 0.8600 and confirms the neutral to bearish bias. The clear break at 0.8600 / 10 would leave the euro positioned to extend the bullish run. On the downside, immediate support can be seen at 0.8565. A confirmation below the latter would expose 0.8540 and 0.8530 (June low).
The concerns about the spread of the delta variant of COVID, more contagious, along with the “dovish” message of the Bank of england they are still a headwind for the pound. The euro for its part, remains without a clear direction.
Turning to economic data, the final UK GDP reading showed that the economy contracted 1.6% during the first quarter of 2021, slightly higher than the 1.5% forecast previously. In another report it was learned that the preliminary estimate of the figures for the Eurozone consumer price index showed an annual rise of 1.9%, in line with expectations. The data did not influence the market.
Technical levels
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