Forex Market Analysis - EUR/GBP currency pair steady higher than 0.8700, maintains its neutral bias below 0.8800
1. Euro reversal from 0.8789 finds support higher than 0.8700.
2. The EUR/USD pair remains trapped between 0.8700 and 0.8800 for the fourth week during a row.
The euro’s reversal from Thursday’s high at 0.8789 has been contained higher than 0.8800 on Friday that leaves the currency pair moving sideways, trapped among a hundred pips vary for the fourth consecutive week.
EUR/GBP currency pair remains neutral with euro and pounds underperforming
The EUR/GBP pair remains forex trading sideways reflective of the general weakness of the euro ad British pound. The common currency has been hit by the German Supreme Court ruling, calling the ECB to justify bond purchases that have triggered considerations regarding the Bank’s financial policy plans to support the EU economy.
The pound, however, has done not the profit from a softer euro. With the United Kingdom insulation most European countries to start out easing COVID-19 restrictions and with Brexit uncertainty still looming, UK’s mid-term economic outlook remains shady. This can be advisement of the pound across the board.
EUR/GBP currency pair in 6-week tops close to 0.8900 on Brexit jitters
1. EUR/GBP pair moves higher to multi-week peaks close to 0.8900.
2. Brexit issues resurfaced and hurt British pound.
3. US-China trade effervescence props up the risk-off sentiment.
The increasing selling bias within the sterling is currently pushing EUR/GBP pair higher to the locality of the 0.8900 mark on Friday, clinching at an equivalent time recent multi-week highs.
EUR/GBP pair boosted by Brexit woes
EUR/GBP pair is reversing 2 consecutive pullbacks at the top of the week and advances to the locality of 0.8900 the figure in response to the re-emergence of Brexit fears.
In fact, discussions between UK and EU officers on the supposed level enjoying field yielded no positive outcome and each parties have currently united to fulfill once more in early June, simply before the transition period deadline (June 30th).
In the same line, the absence of any basis between each country was exacerbated when EU’s M.Barnier noted positions from each party stay very divergent.
EUR/GBP pair key levels
The cross is gaining 0.49% at 0.8874 and faces following up barrier at 0.8886 (monthly high could 15) followed by 0.9019 (monthly high October.20 2019) and at last 0.9324 (2019 high August.12). On the opposite hand, a drop below 0.8713 (200-day SMA) would expose 0.8670 (monthly low April.30) and so 0.8667 (100-day SMA).