EUR/GBP Price Analysis: Euro rally accelerates to test 0.9000 psychological level
|- EUR/GBP rebound from 0.8860 accelerates to test 0.9000 level.
- The euro appreciates with the GBP weighed by Brexit and negative rates speculation.
The euro is trading on a solid footing against the British pound, appreciating nearly 1% so far today, to test psychological level at 0.9000. The pair is being favoured by a softer sterling, which is losing ground against its main peers on the back Brexit fears and market speculation of negative interest rates.
Pound bears are gaining traction on Thursday, with the investors increasingly concerned about the possibility of a no-deal exit from the EU. The talks with the EU remain at a standstill and hopes of a trade agreement are fading fast, with the transition period expiring at the end and the UK Government running out of time to extend it before the June 30 deadline.
Furthermore, market speculation that the Bank of England is considering the introduction of negative interest rates and the high COVID-19 death toll in the UK is adding negative pressure on the pound.
At the moment, the euro is pushing against 0.9000 psychological resistance level, after bouncing up from 0.8860 lows on Monday. Above here, the next resistance level lies at 0.9050 (May 29 high) and then 0.9085 (50% retracement of the March – April decline. On the downside, immediate support lies at 0.8860 (June 2 and 9 lows) and below here, probably at the 50-day SMA, around 0.8830 before the 100-day SMA at 0.8755.
EUR/GBP daily chart
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