- EUR/GBP stages a modest bounce from multi-week lows support near the 0.8680-75 region.
- The GBP witnessed some selling during the early European session provided a goodish lift.
- The German court ruling on Tuesday continued weighing on the euro and capped the upside.
The EUR/GBP cross jumped to fresh session tops, around the 0.8735 region in the last hour and recovered a major part of the previous day's negative move.
The cross continued showing some resilience below the 0.8700 round-figure mark and once again managed to attract some buying near multi-week lows support, around the 0.8680-75 region held since mid-April.
The cross broke out of its daily consolidative trading range and gained some positive traction during the early European session following the release of worse-than-expected UK Construction PMI.
This comes amid the ever-increasing number of coronavirus cases and related deaths in the UK, which coupled with increasing prospects for an extended lockdown took its toll on the British pound.
Meanwhile, the prevalent bearish sentiment surrounding the shared currency failed to impress bullish traders or assist the cross to build on the intraday positive move further beyond 200-hour SMA.
The top German court ruling on Tuesday fueled worries over the country's participation in the stimulus program aimed at cushioning the economic blow from the coronavirus and continued weighing on the euro.
Meanwhile, the European Commission, in its latest economic forecasts for the region, warned about the deepest economic downturn in history, which might further contribute towards capping the cross.
Meanwhile, the cross has been confined in a broader trading band around the very important 200-day SMA over the past one month or so, warranting some caution before placing fresh directional bets.
Hence, it will be prudent to wait for a sustained break in either direction before positioning aggressively for the near-term trajectory as the focus now shifts to the BoE decision on Thursday.
Technical levels to watch
|Today last price||0.8719|
|Today Daily Change||0.0005|
|Today Daily Change %||0.06|
|Today daily open||0.8714|
|Previous Daily High||0.8765|
|Previous Daily Low||0.8691|
|Previous Weekly High||0.8796|
|Previous Weekly Low||0.8671|
|Previous Monthly High||0.8911|
|Previous Monthly Low||0.8671|
|Daily Fibonacci 38.2%||0.8719|
|Daily Fibonacci 61.8%||0.8737|
|Daily Pivot Point S1||0.8681|
|Daily Pivot Point S2||0.8649|
|Daily Pivot Point S3||0.8607|
|Daily Pivot Point R1||0.8756|
|Daily Pivot Point R2||0.8797|
|Daily Pivot Point R3||0.883|
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.