- EUR/GBP regained positive traction on Tuesday amid a pickup in demand for the euro.
- COVID-19/Brexit woes kept the GBP bulls on the defensive and remained supportive.
The EUR/GBP cross rallied around 20-25 pips during the early European session and jumped back above the 0.8600 round-figure mark in the last hour.
Following the previous day's good two-way price swings, the EUR/GBP cross regained positive traction on Tuesday and was supported by a modest pickup in demand for the shared currency. A fresh leg down in the US Treasury bond yields kept the US dollar bulls on the defensive. This, in turn, was seen as a key factor that benefitted the euro.
On the other hand, the British pound extended its subdued/range-bound price action amid concerns about the EU-UK stand-off on the Northern Ireland protocol. Apart from this, the UK government's decision to delay the final stage of easing lockdown measures from June 21 to July 19 further acted as a headwind for the sterling.
Meanwhile, the market reacted little to mostly upbeat UK jobs data, which showed that the unemployment rate dropped to 4.7% in April – in line with market expectations – from the 4.8% previous. This was accompanied by stronger wage growth data and a further drop in the number of people claiming unemployment-related benefits.
It will now be interesting to see if the EUR/GBP cross is able to capitalize on the positive move or once again meets with some fresh supply near a short-term descending trend-line resistance. The mentioned barrier is pegged near the 0.8625-30 region, which if cleared will be seen as a fresh trigger for bullish traders.
Market participants now look forward to a scheduled speech by the Bank of England Governor Andrew Bailey. Apart from this, Brexit-related headlines might influence the GBP and allow traders to grab some short-term opportunities around the EUR/GBP cross.
Technical levels to watch
|Today last price||0.8606|
|Today Daily Change||0.0019|
|Today Daily Change %||0.22|
|Today daily open||0.8587|
|Previous Daily High||0.8606|
|Previous Daily Low||0.8572|
|Previous Weekly High||0.8643|
|Previous Weekly Low||0.8568|
|Previous Monthly High||0.8711|
|Previous Monthly Low||0.8561|
|Daily Fibonacci 38.2%||0.8593|
|Daily Fibonacci 61.8%||0.8585|
|Daily Pivot Point S1||0.8571|
|Daily Pivot Point S2||0.8555|
|Daily Pivot Point S3||0.8538|
|Daily Pivot Point R1||0.8604|
|Daily Pivot Point R2||0.8622|
|Daily Pivot Point R3||0.8638|
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.