- EUR/GBP resumes downside after a brief pause on Thursday.
- Euro heads for lowest weekly close since May against the pound.
The EUR/GBP is falling on Friday, adding to weekly losses. The pair dropped to 0.8911 during the American session, reaching the lowest level since June 10. Near the end of the week, it is consolidating important weekly losses, and under key technical levels.
On Wednesday, EUR/GBP broke under 0.8950, and after a rebound on Thursday, it resumed the decline. Now attention turns to the 0.8900 area. Below the next strong support is seen at 0.8860/65 (June lows). The weekly chart also points to weakness as it heads for the first close below the 20-week moving average since March.
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GBP outperforms amid lack of Brexit headlines
The euro and the pound rose sharply on Friday versus the US dollar amid a broad-based decline of the USD. GBP/USD outperformed EUR/USD by reaching the highest since December 2019.
The lack of Brexit headlines helped the pound somewhat. Next week the tone could continue as no negotiations are scheduled. Still, the lack of progress is negative for the pound that should limit the upside on the medium term.
Technical levels
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