EUR/GBP rallies to one-week tops, inches closer to mid-0.8500s

EUR/GBP witnessed a strong intraday short-covering move from over one-year lows.
Reports that the EU may hit vaccination target earlier than projected boosted the euro.
A modest pickup in the USD demand weighed on the GBP and remained supportive.

Haresh Menghani FXStreet

The EUR/GBP cross caught some aggressive bids during the early European session and jumped to one-week tops, closer to mid-0.8500s in the last hour.

Having shown some resilience below the 0.8500 psychological mark, the cross staged a solid recovery from over one-year lows touched in the previous session. The shared currency's relative outperformance against its British counterpart could be attributed to reports that the EU may hit its vaccination target much earlier than projected.

Bloomberg – citing an internal memo from EU member states – reported that Germany, France, Italy, and Spain will have sufficient supplies to vaccinate at least 57% of their total populations by the end of June. This, along with a stronger Eurozone Sentix investor confidence index, which jumped to 13.1 for April, further underpinned the euro.

On the other hand, a modest pickup in the US dollar demand prompted some selling around the GBP/USD pair. This was seen as another factor that contributed to the EUR/GBP pair's strong intraday positive move of around 50 pips. It, however, remains to be seen if bulls can capitalize on the move or fail near the 0.8555-60 support-turned-resistance.

There isn't any major market-moving economic data due for release on Tuesday. Hence, developments surrounding the coronavirus saga will play a key role in influencing the EUR/GBP cross and allow traders to grab some short-term opportunities.

Technical levels to watch

EUR/GBP

Overview
Today last price	0.8529
Today Daily Change	0.0031
Today Daily Change %	0.36
Today daily open	0.8498

Trends
Daily SMA20	0.8562
Daily SMA50	0.8656
Daily SMA100	0.8823
Daily SMA200	0.8935

Levels
Previous Daily High	0.8512
Previous Daily Low	0.8472
Previous Weekly High	0.8563
Previous Weekly Low	0.8493
Previous Monthly High	0.8674
Previous Monthly Low	0.8503
Daily Fibonacci 38.2%	0.8487
Daily Fibonacci 61.8%	0.8497
Daily Pivot Point S1	0.8476
Daily Pivot Point S2	0.8454
Daily Pivot Point S3	0.8435
Daily Pivot Point R1	0.8516
Daily Pivot Point R2	0.8534
Daily Pivot Point R3	0.8556

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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