- EUR/GBP gained some positive traction on Monday and snapped two days of the losing streak.
- COVID-19/Brexit woes continued weighing on the sterling and remained supportive of the move.
- A subdued USD demand benefitted the euro, which further provided an additional lift to the cross.
The EUR/GBP cross shot to fresh daily tops during the early European session, with bulls making a fresh attempt to build on the momentum beyond the 0.8600 mark.
The cross attracted some buying near the 0.8570 region on the first day of a new trading week and for now, seems to have stalled last week's rejection slide from a short-term descending trend-line hurdle. A combination of factors continued acting as a headwind for the British pound and provided a goodish lift to the EUR/GBP cross.
Investors remain worried that the UK may delay its plans to end restrictions fully in light of the spread of the so-called Delta variant. In the latest development, the UK Prime Minister Boris Johnson will make a statement this Monday and might push back the timeline to end of restrictions in light of the spread of the so-called Delta variant.
The initial plan was to reopen the economy fully on June 21. The delay dampened prospects for a rapid UK economic recovery from the pandemic. This comes amid the EU-UK collision over Norther Ireland protocol, which was seen as another factor that further contributed to the sterling's underperformance against its European counterpart.
In a standoff over the Northern Ireland protocol, the EU warned of swift and firm action if the UK fails to implement its post-Brexit obligations. Adding to this, French President Emmanuel Macron said that NI is not a part of the UK. This, along with a modest pickup in the shared currency, provided an additional lift to the EUR/GBP cross.
The US dollar was seen consolidating Friday's strong move up as investors seemed reluctant to place any aggressive bets ahead of the FOMC meeting on June 15-16. This, in turn, was seen as a key factor that benefitted the euro. The combination of factors allowed the EUR/GBP cross to snap two consecutive days of the losing streak.
Technical levels to watch
|Today last price||0.8599|
|Today Daily Change||0.0020|
|Today Daily Change %||0.23|
|Today daily open||0.8579|
|Previous Daily High||0.8606|
|Previous Daily Low||0.8568|
|Previous Weekly High||0.8643|
|Previous Weekly Low||0.8568|
|Previous Monthly High||0.8711|
|Previous Monthly Low||0.8561|
|Daily Fibonacci 38.2%||0.8583|
|Daily Fibonacci 61.8%||0.8592|
|Daily Pivot Point S1||0.8563|
|Daily Pivot Point S2||0.8547|
|Daily Pivot Point S3||0.8526|
|Daily Pivot Point R1||0.8601|
|Daily Pivot Point R2||0.8622|
|Daily Pivot Point R3||0.8638|
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