EUR/GBP fails to hold above 0.8900 remains close to 0.8860 support level


  • EUR/GBP recovery attempt capped below 0.8920.
  • The euro trims losses after a two-day decline.
  • Longer-term, the euro is expected to remain trapped between 0.88 and 0.8900– Commerzbank.

The euro is going through a mild pick up on Tuesday, bouncing up from 0.8870 lows to trim loses after a two-day decline. The pair, however, has failed to consolidate above 0.8900 and remains dangerously close to multi-month lows at 0.8860.

The euro picks up as market sentiment improves

The cable has lost ground against a somewhat stronger euro on Tuesday, fuelled by a significant EUR/USD recovery over the European session, that has strengthened the common currency across the board. The pair, however, has lost ground during the US session although it remains positive on the daily chart.

Macroeconomic data has also been euro-supportive on Tuesday, with the German IFO Business Climate survey posting stronger than expected figures while German GDP showed that the economy performed better than expected in the third quarter.

Euro strength has been limited by a broadly positive pound, with the GBP/USD trading at multi-month highs, supported by market optimism regarding the progress on COVID-19 vaccines and the widespread confidence about an imminent Brexit deal.

EUR/GBP seen trapped between 0.88 and 0.89 for the coming months – Rabobank

From a wider point of view, the FX Analysis team at Rabobank sees the pair trading sideways over the next months: “(The) GBP still has a lot of hurdles to clear before investor confidence can increase another couple of notches and UK politics has the potential to sour the mood.  We are expecting that EUR/GBP will trade mostly in the 0.88/0.89 region in the coming months.”

Technical levels to watch

EUR/GBP

Overview
Today last price 0.8894
Today Daily Change 0.0005
Today Daily Change % 0.06
Today daily open 0.8889
 
Trends
Daily SMA20 0.8978
Daily SMA50 0.9052
Daily SMA100 0.9041
Daily SMA200 0.8949
 
Levels
Previous Daily High 0.8928
Previous Daily Low 0.8867
Previous Weekly High 0.8995
Previous Weekly Low 0.8915
Previous Monthly High 0.9162
Previous Monthly Low 0.8984
Daily Fibonacci 38.2% 0.889
Daily Fibonacci 61.8% 0.8905
Daily Pivot Point S1 0.8861
Daily Pivot Point S2 0.8834
Daily Pivot Point S3 0.88
Daily Pivot Point R1 0.8923
Daily Pivot Point R2 0.8956
Daily Pivot Point R3 0.8984

 

 

 

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

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD hits fresh one-month low amid souring market mood

EUR/USD has been extending its falls and dips below 1.21 as US retail sales badly disappointed and the worsening mood is supporting the safe-haven dollar. Markets digest Biden's stimulus plan. US Consumer Sentiment declined to 59.2 points. 

EUR/USD News

GBP/USD retreats toward 1.36 amid fresh dollar strength

GBP/US has pared its gains and falls toward 1.36 as the dollar gains ground. The UK economy shrank by 2.6% in November, better than estimated. The UK is ramping up its vaccination campaign and PM Johnson is pressured to ease the lockdown. 

GBP/USD News

Gold extends sideways grind near $1,850

The XAU/USD pair registered small daily gains on Thursday but struggled to extend its recovery amid a lack of significant fundamental drivers on Friday. As of writing, the pair was up 0.15% on a daily basis at $1,849.

Gold news

Forex Today: Markets “sell the fact” on Biden's stimulus, dollar rises, retail sales eyed

Markets are on the back foot after Biden hinted about tax hikes while introducing stimulus. The safe-haven dollar is edging higher despite Powell's pledge to keep monetary policy accommodative. 

Read more

DXY breaks above key downtrend, eyes move above 91.00

USD has been strongly supported on what has shaped up to be a very much risk off final trading day of the week. Most G10/USD pairs have seen significant weakness, aside from CHF/USD and JPY/USD, given that the two currencies are also considered “safe havens”.

US Dollar Index News

Forex MAJORS

Cryptocurrencies

Signatures