EUR/GBP flits with one-week-old trading range support, around 0.8680-75 region

  • EUR/GBP witnessed fresh selling on Monday amid a pickup in demand for the British pound.
  • Optimism over the gradual reopening of the UK economy continued underpinning the sterling.
  • Sustained USD selling extended some support to the euro, which might help limit the downside.

The EUR/GBP cross extended its intraday descent through the mid-European session and was last seen hovering near the lower boundary of a one-week-old trading range, around the 0.8680-75 region.

The cross continued with its struggle to find acceptance above the 0.8700 mark and witnessed some fresh selling on the first day of a new trading week. The British pound's relative outperformance against its European counterpart could be solely attributed to the optimism over a strong economic recovery in the UK, bolstered by the easing of COVID-19 restrictions.

In the latest developments, the UK Prime Minister said this Monday that the government will be able to go ahead with further restriction loosening and dispense with the one metre-plus social distancing rule on June 21. Regarding international travel, Johnson noted that there will be some opening up on May 17 but added that they need to be as cautious as they can.

Despite the supporting factor, investors might be reluctant to place any aggressive bullish bets around the sterling amid the risk posed by the Scottish elections next week. Polls are pointing to pro-independence parties achieving a supermajority in Scotland's parliament, which might intensify pressure on Johnson to allow a second independence referendum.

This, along with a modest pickup in demand for the shared currency, might extend some support to the EUR/GBP cross and help limit the downside, at least for the time being. Expectations that the Fed will keep interest rates low for a longer period prompted some fresh selling around the US dollar, which, in turn, was seen as a key factor that benefitted the euro.

Hence, it will be prudent to wait for some strong follow-through selling before confirming that the recent bounce from over one-year lows has run out of steam. The EUR/GBP cross might then accelerate the slide back towards challenging the 0.8600 round-figure mark. The downside, however, is likely to remain cushioned as investors might prefer to wait on the sidelines ahead of the latest monetary policy update by the Bank of England on Thursday.

Technical levels to watch


Today last price 0.8678
Today Daily Change -0.0020
Today Daily Change % -0.23
Today daily open 0.8698
Daily SMA20 0.8662
Daily SMA50 0.8619
Daily SMA100 0.8762
Daily SMA200 0.8899
Previous Daily High 0.8718
Previous Daily Low 0.8682
Previous Weekly High 0.872
Previous Weekly Low 0.8674
Previous Monthly High 0.872
Previous Monthly Low 0.8472
Daily Fibonacci 38.2% 0.8704
Daily Fibonacci 61.8% 0.8695
Daily Pivot Point S1 0.8681
Daily Pivot Point S2 0.8664
Daily Pivot Point S3 0.8645
Daily Pivot Point R1 0.8717
Daily Pivot Point R2 0.8735
Daily Pivot Point R3 0.8752



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

Are you new to trading or have been trading for a while and you feel stuck?

Try with us!
Become Premium!

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD rises toward after US retail sales miss estimates

EUR/USD is holding onto its gains above 1.21 after the US reported no change in April's retail sales, below 1% expected. The Control Group plunged by 1.5%. The dollar is falling across the pond. US Consumer Sentiment missed with 82.8, yet inflation expectations surged to 4.6%.


GBP/USD trades below 1.41 after US consumption data

GBP/USD is trading above 1.4050, benefitting from the better market mood. Sterling is shrugging off worries about the spread of new virus variants, which may delay the reopening. US retail sales missed estimates, causing jitters. 


XAU/USD rallies back closer to multi-month tops, around $1,840 region

Gold could be on the verge of a lower low, but the hourly time frame is key. The hourly support structure is guarding a break to test bullish commitments at 1,800. The 10-day EMA and confluence of the 50% mean reversion are also offering support. 

Gold News

Dogecoin bulls hold the key for 40% gains

Dogecoin price is at a pivotal point, resulting in a 40% upswing or 30% sell-off. A swift surge beyond $0.522 and a retest of this level confirms a bullish outlook. If DOGE slices through the $0.351, it will put an end to the optimistic narrative.

Read more

AMC Entertainment Holdings surges on triangle breakout, targets $14.54 and $20

AMC has done it again and in the process is stealing the GameStop crown. Supposedly a movie about the whole GameStop saga is in the works, but if AMC has its way it will be stealing the show. Coming to an AMC theatre near you: "AMC to the moon". AMC closed Thursday at $12.77 for a nice gain of 23.7%, thank you very much.

Read more