EUR/GBP jumps from three months lows toward the 0.8930 area
- Pound among worst performer on Thursday, drops across the board.
- EUR/GBP trend still points to the downside, but the momentum faded.
The EUR/GBP is rising sharply on Thursday, trimming weekly losses and removing the recent weakness. During the American session, the euro printed a fresh daily high at 0.8923. As of writing, it trades at 0.8920, near the top and far from the three-month lows it reached earlier today at 0.8865.
The sharp rise took place amid a decline of the pound across the board. It is the worst G10 performer affected by economic data from the United Kingdom, a decline in yields and the lack of progress regarding Brexit negotiations.
Technical outlook
The sharp reversal in EUR/GBP has weakened the technical outlook for the pound. Still the cross shows a bearish bias but the momentum eased. On the upside, the immediate resistance is seen at 0.8935 followed by 0.8970. A daily close above 0.9000 would negate the bearish bias.
On the flip side, a slide below 0.8905/10 would remove the current positive tone of the pound. The next support stands at 0.8885 followed by the low at 0.8865.
Technical levels
Author
Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
