EUR/GBP sticks to gains near two-week high, around 0.8500 post-Eurozone CPI

  • EUR/GBP gained strong positive traction on Tuesday and shot to over a two-week high.
  • Weaker USD, hotter-than-expected flash Eurozone CPI benefitted the shared currency.
  • Brexit uncertainties acted as a headwind for the British pound and remained supportive.

The EUR/GBP cross maintained its bid tone near the key 0.8500 psychological mark, or over two-week high and had a rather muted reaction to the flash Eurozone CPI report.

The cross regained positive traction on Tuesday and built on last week's strong recovery move from the 0.8380 support zone, or the lowest level since February 2020. The shared currency witnessed a fresh bout of a short-covering amid the heavily offered tone surrounding the US dollar. This, in turn, was seen as a key factor that provided a goodish lift to the EUR/GBP cross.

The common currency was also underpinned by hotter-than-expected Eurozone consumer inflation figures for November. In fact, the headline CPI accelerated to a 4.9% YoY rate in November as against market expectations for a slide to 3.7% from the 4.1% rise reported in the previous month. Adding to this, the core reading also surpassed consensus estimates and surged past the European Central Bank's 2% target, arriving at a 2.6% YoY rate during the reported month.

On the other hand, persistent Brexit-related uncertainties further contributed to the British pound's relative underperformance against its European counterpart and remained supportive. The UK-EU impasse over the Northern Ireland Protocol, along with the worsening row over the post-Brexit fishing rights between France and Britain continued acting as a headwind for the sterling.

The combination of factors favours bullish traders and support prospects for additional gains. The positive outlook is reinforced by the fact that the EUR/GBP cross has now found acceptance above the 0.8500 mark. Hence, a subsequent move towards testing the next relevant hurdle, around the 0.8535-40 horizontal zone, remains a distinct possibility.

Technical levels to watch


Today last price 0.8504
Today Daily Change 0.0025
Today Daily Change % 0.29
Today daily open 0.8479
Daily SMA20 0.8478
Daily SMA50 0.8492
Daily SMA100 0.8519
Daily SMA200 0.8564
Previous Daily High 0.849
Previous Daily Low 0.8446
Previous Weekly High 0.8496
Previous Weekly Low 0.8381
Previous Monthly High 0.8624
Previous Monthly Low 0.8403
Daily Fibonacci 38.2% 0.8463
Daily Fibonacci 61.8% 0.8473
Daily Pivot Point S1 0.8454
Daily Pivot Point S2 0.8428
Daily Pivot Point S3 0.841
Daily Pivot Point R1 0.8497
Daily Pivot Point R2 0.8515
Daily Pivot Point R3 0.854



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 accelerates slump, approaches 0.1300

The shared currency is among the weakest dollar’s rivals. EUR/USD trades around 1.1320 and is near its weekly low. Elsewhere, the greenback weakened after soft US employment-related figures and as stocks rallied.


GBP/USD holds above 1.3600 as dollar fails to capitalize on US data

GBP/USD tested 1.3600 earlier in the day but managed to stage a recovery in the early American session. The greenback is having a hard time gathering strength as investors assess the mixed macroeconomic data releases from the US.


Gold bulls looking for a re-test of November high at 1,877.15

Gold resumed its advance after a short-lived consolidative stage, reaching a fresh two-month high of $1,847.92 a troy ounce. The dollar came under renewed selling pressure after the US released mixed economic figures.

Gold News

Decentraland holds support but MANA may return to $2

Decentraland price action is, at present, very indecisive. However, while the overall outlook is bearish – especially within the Ichimoku Kinko Hyo system, there is evidence that a turnaround to the upside may be coming soon.

Read more

When real rates are negative for a sustained period, is it a sign of looming recession?

We agree that inflation should moderate this year due to the money side of things, but worry that monetary policy is powerless against most of the supply chain issues, commodity prices, greedy consumer goods companies, and that weird labor shortage.

Read more