EUR/GBP extends losses and approaches 0.9000 psychological level

  • EUR/GBP extends its reversal from 0.9175 and approaches 0.9000.
  • The pound remains bid amid the strong GBP/USD rebound.
  • Longer-term, the euro is on a positive trend towards 0.9308 – Commerzbank.

The euro is losing ground against the British pound for the second consecutive day. The pair has lost approximately 1.6% after pulling back from three-month highs at 0.9175 and is approaching the psychological level at 0.9000.

The euro loses ground against a stronger pound

The common currency is giving away gains after a nearly 3% rally over the last three weeks. The strength of the GBP/USD has pushed the pound higher across the board in spite of the looming concerns about Brexit uncertainty and the positive eurozone data seen earlier today.

According to the Eurozone Manufacturing PMI from June, economic activity in the sector improved to 47.4, beating expectations of a 46.9 reading, which shows that the industrial sector moves closer to the 50 level, the limit between activity contraction and growth. 

In the UK, the Markit Manufacturing PMI has remained at 50.1 in June, unchanged from the previous month and broadly in line with the market expectations.

EUR/GBP to target 0.9308 in three-months – Commerzbank

On the bigger picture, the pair remains positive, and according to Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, aiming to 0.9308 over the next three-months, EUR/GBP is at three-month highs and already approaching the 61.8% retracement at 0.9184. Above here will trigger a move to 0.9308/23, this is the location of the 78.6% retracements of the move seen since March and the 2017 high at 0.9308 and this represents our initial upside target zone.” 

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.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD recovers towards 1.1750 as risk-on rules

EUR/USD is back around 1.1750 as upbeat US data fueled equities' early rally. Concerns about economic progress remain in the background, as the pandemic keeps taking its toll. 


GBP/USD bounces from 1.30 as demand for the dollar eases

Dollar's corrective advance seems complete, now down against most major rivals. GBP/USD trades little changed for a second consecutive day in the 1.3060/70 price zone. Market players continue to ignore upcoming Brexit chaos.


Gold: Interesting Fibonacci extension projects a move to $2500

Gold has risen 10.74% in the month of July, the biggest monthly increase since February 2016. As the price is breaking all-time highs it's hard to say where the yellow metal could end up.

Gold News

ETH/BTC skyrocketing, Bitcoin stays above $11,000

The cryptocurrency market is influenced by leveraged positions liquidation. Cryptocurrency experts expect further growth amid a global flight to safety assets. ETH/BTC hits the highest level since May 2019.

Read more

WTI drops below $40 on demand worries, OPEC+ output increase

Crude oil prices posted losses last week and seem to be struggling to shake off the bearish pressure on Monday. As of writing, the barrel of West Texas Intermediate (WTI) was trading at $39.85, losing 1.5% on a daily basis.

Oil News