• EUR/GBP regained some positive traction on Friday and recovered a part of the overnight losses.
  • Reduced BoE rate hike bets undermined the British pound and provided a modest lift to the cross.
  • A stronger USD weighed on the shared currency and held back bulls from placing aggressive bets.

The EUR/GBP cross traded with a mild positive bias through the first half of the European session, albeit seemed struggling to capitalize on the move beyond mid-0.8500s.

The cross attracted some buying on Friday and reversed a part of the previous day's sharp corrective slide from the vicinity of the 0.8600 mark, or over a two-month high. The British pound's relative underperformance comes amid diminishing odds for an imminent interest rate hike by the Bank of England (BoE).

Against the backdrop of persistent Brexit-related uncertainties, the imposition of fresh COVID-19 restrictions in the UK could force the BoE to delay its decision to hike interest rates. This, along with mostly disappointing UK macro releases undermined the sterling and provided a modest lift to the EUR/GBP cross.

The UK Office for National Statistics reported that the economic growth decelerated to 0.1% in October from a 0.6% rise reported in the previous month, missing expectations for a reading of 0.4%. Adding to this, the total industrial output dropped 0.6% in October as against a 0.1% increase anticipated and undermined the sterling.

Separately, the headline German CPI matched original estimates and fell 0.2% in November. The yearly rate stood at 5.2%, though did little to impress the euro bulls. The prevalent US dollar bullish sentiment exerted some pressure on the shared currency and kept a lid on any meaningful gains for the EUR/GBP cross.

This comes on the back of this week's rejection near a descending trend-line resistance extending from April swing high and warrants some caution for aggressive bullish traders. Hence, it will be prudent to wait for a strong follow-through buying before positioning for the resumption of a two-week-old upward trajectory.

Technical levels to watch


Today last price 0.8546
Today Daily Change 0.0003
Today Daily Change % 0.04
Today daily open 0.8543
Daily SMA20 0.8473
Daily SMA50 0.8484
Daily SMA100 0.8516
Daily SMA200 0.856
Previous Daily High 0.86
Previous Daily Low 0.854
Previous Weekly High 0.8551
Previous Weekly Low 0.8446
Previous Monthly High 0.8595
Previous Monthly Low 0.8381
Daily Fibonacci 38.2% 0.8563
Daily Fibonacci 61.8% 0.8577
Daily Pivot Point S1 0.8523
Daily Pivot Point S2 0.8502
Daily Pivot Point S3 0.8464
Daily Pivot Point R1 0.8582
Daily Pivot Point R2 0.862
Daily Pivot Point R3 0.8641



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 Join Telegram

Recommended content

Recommended content

Editors’ Picks

AUD/USD bulls seek a break of 0.6925 for 0.6950 target area

AUD/USD bulls seek a break of 0.6925 for 0.6950 target area

AUD/USD is consolidated at the start of the Asian day following some back and forth at the start of the week. The Aussie is trading at 0.6922 and will be dependent on the trajectory of the greenback in the absence of domestic data this week other than Retail Sales tomorrow. 


EUR/USD retreats from fortnight high near 1.0600 on recession/inflation fears

EUR/USD retreats from fortnight high near 1.0600 on recession/inflation fears

EUR/USD holds onto the pullback from a two-week high as bulls get rejections from short-term key resistances, as well as risk-off mood, during Tuesday’s Asian session. The major currency pair remains pressured around 1.0585.


Gold sees downside below $1,820, focus shifts to Fed Powell

Gold sees downside below $1,820, focus shifts to Fed Powell

Gold price displayed a failed attempt to sustain above the critical resistance of $1,840.00 on Monday. The precious metal has turned sideways after a sheer downside move and is expected to extend its losses after violating the crucial support of $1,820.85.

Gold News

Terra’s LUNA price finally shows the buy signal you’ve been waiting for

Terra’s LUNA price finally shows the buy signal you’ve been waiting for

Terra’s LUNA price shows optimism to start the final week of June. The potential for a new bull run is beginning to materialize. LUNA price sees an uptick in social media commentary.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!