EUR/GBP clings to modest intraday gains near 0.8600 mark, lacks follow-through

  • EUR/GBP gained some positive traction on Monday and snapped three days of the losing streak.
  • Brexit jitters acted as a headwind for the British pound and remained supportive of the move up.
  • A modest USD strength, weaker German data weighed on the euro and capped gains for the cross.

The EUR/GBP cross refreshed daily tops during the early European session, albeit lacked any strong follow-through buying. The cross was last seen trading around the 0.8600 round-figure mark, up nearly 0.15% for the day.

Following an early dip to the 0.8575 area, the cross gained some positive traction on Monday and built on the previous session's modest bounce from over three-week lows. The uptick allowed the EUR/GBP cross to snap three consecutive days of the losing streak and was sponsored by the emergence of some selling around the British pound.

Ahead of Brexit talks on the Northern Ireland protocol later this week, the European Union's ambassador to the UK said on Sunday that the level of trust between the two powers was low. This indicated that Britain's relationship with the EU has been souring, which, in turn, was seen as a key factor that weighed on the sterling.

That said, the optimistic outlook for the UK economic recovery and indications that the Bank of England could raise rates well into next year acted as a tailwind for the GBP. The BoE policymaker Gertjan Vlieghe indicated recently that the central bank was likely to raise rates earlier if the economy rebounds more quickly than expected.

On the other hand, the shared currency was seen oscillating in a range amid a modest US dollar strength. Apart from this, weaker German Factory Orders data failed to provide any additional lift to the EUR/GBP cross. This makes it prudent to wait for some before placing fresh bullish bets heading into the ECB policy meeting on Thursday.

Technical levels to watch


Today last price 0.8608
Today Daily Change 0.0015
Today Daily Change % 0.17
Today daily open 0.8593
Daily SMA20 0.8609
Daily SMA50 0.8627
Daily SMA100 0.8663
Daily SMA200 0.885
Previous Daily High 0.8601
Previous Daily Low 0.8566
Previous Weekly High 0.8646
Previous Weekly Low 0.8566
Previous Monthly High 0.8711
Previous Monthly Low 0.8561
Daily Fibonacci 38.2% 0.8579
Daily Fibonacci 61.8% 0.8587
Daily Pivot Point S1 0.8572
Daily Pivot Point S2 0.8551
Daily Pivot Point S3 0.8537
Daily Pivot Point R1 0.8607
Daily Pivot Point R2 0.8622
Daily Pivot Point R3 0.8642



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.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD: Bulls knock the door ahead of Fed

EUR/USD struggles to extend two-day uptrend, sidelined of late. The major currency pair rose for the second consecutive day on Tuesday while confirming the falling wedge bullish formation on the daily chart.


GBP/USD rebounds toward 1.3900 as USD weakens

GBP/USD extends the previous two day’s gains in Wednesday’s Asian session. The pair trades in a very narrow trade band and awaits for confirmation. US dollar trades below 93.00 ahead of the FOMC meeting. The sterling gains on the sharp decline in coronavirus infections.


EUR/USD: Bulls knock the door ahead of Fed

EUR/USD struggles to extend two-day uptrend, sidelined of late. The major currency pair rose for the second consecutive day on Tuesday while confirming the falling wedge bullish formation on the daily chart.


Three reasons why Cardano could rally 60%

Cardano price triggers a large symmetrical triangle pattern with yesterday’s close above the upper trend line. ADA/BTC is nearing a critical support level with the intra-day Relative Strength Indexes (RSI) flashing a bullish momentum divergence.

Read more

Fed Interest Rate Decision Preview: The horns of a inflation dilemma

No change in rate policy or bond purchases expected. US economy appears to be slowing under labor, supply chain shortages. Treasury curve has flattened, inflation has jumped since the June 16 FOMC. Dollar has gained against most majors since mid-June.

Read more