EUR/GBP steady above 0.8700, maintains its neutral bias below 0.8800


  • Euro reversal from 0.8789 finds support above 0.8700.
  • The EUR/USD remains trapped between 0.8700 and 0.8800 for the fourth week in a row.
  • On the mid-term, FX analysts at Rabobank see the euro breaking the channel upwards.

The euro’s reversal from Thursday’s high at 0.8789 has been contained above 0.8800 on Friday which leaves the pair moving sideways, trapped within a 100 pip range for the fourth consecutive week.

EUR/GBP remains neutral with euro and pound underperforming

The EUR/GBP remains trading sideways reflecting the overall weakness of the euro ad British pound. The common currency has been hit by the German high court ruling, calling the ECB to justify bond purchases which has triggered concerns about the Bank’s monetary policy plans to shore up the EU economy.

The pound, however, has failed to take advantage of a softer euro. With the UK lagging most European countries to start easing COVID-19 restrictions and with Brexit uncertainty still looming, UK’s mid-term economic outlook remains shady. This is weighing the pound across the board.

FX analysts at Rabobank see the pound vulnerable in the mid-term

According to the Rabobank FX analysts’ team, the current standoff could end with the euro breaking higher, “Given concerns that the future arrangements between the UK and the EU may not be resolved by June, we expect GBP to be under pressure. We see EUR/GBP at 0.88 on a 1 to 3-month view with upside risk.”

EUR/GBP Key levels to watch

EUR/GBP

Overview
Today last price 0.8738
Today Daily Change -0.0029
Today Daily Change % -0.33
Today daily open 0.8767
 
Trends
Daily SMA20 0.8738
Daily SMA50 0.8842
Daily SMA100 0.8655
Daily SMA200 0.8721
 
Levels
Previous Daily High 0.879
Previous Daily Low 0.8709
Previous Weekly High 0.8796
Previous Weekly Low 0.8671
Previous Monthly High 0.8911
Previous Monthly Low 0.8671
Daily Fibonacci 38.2% 0.8759
Daily Fibonacci 61.8% 0.874
Daily Pivot Point S1 0.872
Daily Pivot Point S2 0.8674
Daily Pivot Point S3 0.8639
Daily Pivot Point R1 0.8801
Daily Pivot Point R2 0.8836
Daily Pivot Point R3 0.8883

 

 

 

 

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