EUR/GBP finds support near the 21-day SMA, remains below 0.9000


  • EUR/GBP recovers ground lost and approaches 0.9000.
  • EUR remains bid on USD-weakness; pushes the cross higher.
  • UK jobs, ZEW survey next of relevance in the docket on Tuesday.

The continuation of the buying interest around the single currency is lending fresh wings to EUR/GBP to the 0.8980 region.

EUR/GBP now looks to UK, EMU

The European cross is trading on a positive note after two consecutive daily pullbacks, all in response to the unabated buying interest in the shared currency and some fresh selling mood surrounding the Sterling.

There is no fresh news around the Brexit negotiations, while latest events signal that frontrunner candidate Boris Johnson could be assessing a trade deal with the US following the October 31 deadline.

Later in the week, UK jobs and the ZEW survey are due tomorrow, followed by key UK inflation figures for the month of June and final CPI prints in Euroland on Wednesday.

What to look for around GBP

Rising uncertainty in the UK political scenario and around the Brexit process is expected to keep the Pound under permanent pressure for the time being. In the UK economy, poor results from key fundamentals continue to add to the sour prospects for the economy in the months to come and collaborate further with the bearish view on the currency in the foreseeable future. On another direction, the overall tone from the BoE appears to have shifted towards a more dovish gear, while markets have started to price in the likeliness of a rate cut at some point in Q3/Q4.

EUR/GBP key levels

The cross is gaining 0.26% at 0.8982 facing the next hurdle at 0.9010 (monthly high Jul.10) seconded by 0.9062 (low Jan.11) and finally 0.9092 (2019 high Jan.3). On the other hand, a break below 0.8951 (21-day SMA) would expose 0.8872 (low Jun.20) and then 0.8826 (low Jun.5).

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

Editors’ Picks

EUR/USD hits two-month lows amid USD strength

EUR/USD has pared its gains that followed upbeat preliminary PMIs for Germany came out above expectations, pointing to a recovery. The USD is advancing amid fears of the coronavirus.

EUR/USD News

GBP/USD drops below 1.31 amid USD strength, fails to sustain PMI gains

GBP/USD is trading below  1.31 after hitting a fresh high of 1.3172. The UK Manufacturing PMI beat with 49.8 and Services PMI with 52.9. The USD is gaining ground across the board.

GBP/USD News

Cryptos: Bears take over and draw a bloody moon

Despite appearances, Bitcoin is the asset with the best risk/benefit ratio. The current falls are adjusted to the ranges of the previous rise. Downward momentum expires in the first half of February.

Read more

Gold rebounds above $1560

The XAU/USD pair dropped to a daily low of $1556.70 during the European trading hours as the easing worries over coronavirus becoming a global epidemic and a broad-based USD strength put the pair under bearish pressure.

Gold News

USD/JPY drops to two-week lows near 109.30

The USD/JPY pair reversed its direction during the American trading hours as the risk-off atmosphere allowed the JPY to find demand as a safe-haven.

USD/JPY News

Forex MAJORS

Cryptocurrencies

Signatures