EUR/GBP: Pressured around 0.8600 despite Brexit, coronavirus fears


  • EUR/GBP snaps two-day uptrend, holds lower ground of late.
  • Germany pushes for ban on British travellers, UK Health Minister resigned.
  • Irish Taoiseach listens the unionist concerns over NI protocol.

EUR/GBP fails to extend the previous two week’s recovery moves, down for the first time in three days, amid Monday’s Asian session. That said, the cross-currency pair eases to 0.8594, down 0.05%, by the press time.

In doing so, the quote ignores downbeat headlines concerning the Brexit and the coronavirus (COVID-19) for the UK amid a sluggish session with a mildly bid risk appetite.

The European Union (EU) and the UK remain at loggerheads over the Brexit, despite agreeing to overcome the sausage war. The latest news from the BBC suggesting the Irish Prime Minister (Taoiseach) efforts to tame the unionist moves could escalate the Brexit woes. “Micheál Martin was responding to an accusation by DUP leader-designate Sir Jeffrey Donaldson that the Irish government was "cheerleading" for the protocol,” said the BBC.

On a different page, UK Health Secretary Health Minister Matt Hancock’s resignation, due to breaking the virus-led restrictions, framed by him. It’s worth noting that The Times’ news suggesting Germany’s push to ban British travellers should also have weighed on the GBP but did not. The Times said, “Germany will attempt today to ban British travellers from the EU regardless of whether or not they have had a vaccine.”

Elsewhere, market sentiment remains mildly bid with S&P 500 Futures up 0.07% and the US 10-year Treasury yields down 1.2 basis points (bps) by the press time.

Moving on, a light calendar and thin macros may keep the EUR/GBP pullback intact. However, the British traders’ reaction to the negative news may recall buyers.

Technical analysis

Unless crossing a downward sloping trend line from early May around 0.8615, not to forget the 100-day SMA near 0.8625, EUR/GBP remains on the bears’ radar.

Additional important levels

Overview
Today last price 0.8594
Today Daily Change -0.0005
Today Daily Change % -0.06%
Today daily open 0.8599
 
Trends
Daily SMA20 0.8588
Daily SMA50 0.8621
Daily SMA100 0.8626
Daily SMA200 0.8816
 
Levels
Previous Daily High 0.8605
Previous Daily Low 0.8567
Previous Weekly High 0.8605
Previous Weekly Low 0.8531
Previous Monthly High 0.8711
Previous Monthly Low 0.8561
Daily Fibonacci 38.2% 0.859
Daily Fibonacci 61.8% 0.8581
Daily Pivot Point S1 0.8575
Daily Pivot Point S2 0.8552
Daily Pivot Point S3 0.8537
Daily Pivot Point R1 0.8613
Daily Pivot Point R2 0.8628
Daily Pivot Point R3 0.8651

 

 

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