EUR/GBP refreshes session tops, looks to build on momentum beyond 0.8600 mark


  • 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

EUR/GBP

Overview
Today last price 0.8599
Today Daily Change 0.0020
Today Daily Change % 0.23
Today daily open 0.8579
 
Trends
Daily SMA20 0.861
Daily SMA50 0.8633
Daily SMA100 0.8652
Daily SMA200 0.8843
 
Levels
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

 

 

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD hovers around 1.1900, retains weekly gains

The EUR/USD pair trades around the 1.19 mark after the Eurozone Q2 Prelim GDP beat estimates with 2% while US PCE inflation rose by less than anticipated in June, printing at 3.5% YoY. Risk-on mood persists.

EUR/USD News

GBP/USD retreats after flirting with 1.4000

GBP/USD retreated from near the 1.4000 level, but the greenback remains away from investors' radar. Optimism over the Brexit issue and the declining trend in new COVID-19 cases in the UK offers support to the pound.

GBP/USD News

XAU/USD slides to $1,820 area, downside seems limited

Gold traded with a mild negative bias around the $1,825 region, or daily lows, during the early North American session, albeit lacked any follow-through selling.

Gold News

Shiba gets listed on eToro as demand for SHIB skyrockets

Leading investment platform eToro has been adding cryptocurrency assets on popular demand from users. The Dogecoin killer recently amassed 600,000 holders despite range-bound price action. 

Read more

NIO shares rise again as Wall Street shrugs off recent China woes

NYSE:NIO added 1.86% as EV and China stocks bounced back again. Nio rides higher as industry leader Tesla gets some major upgrades. Nio rival XPeng releases a refreshed look for its compact SUV.

Read more

Forex MAJORS

Cryptocurrencies

Signatures