- EUR/GBP extends its reversal from 0.9175 and approaches 0.9000.
- The pound remains bid amid the strong GBP/USD rebound.
- Longer-term, the euro is on a positive trend towards 0.9308 – Commerzbank.
The euro is losing ground against the British pound for the second consecutive day. The pair has lost approximately 1.6% after pulling back from three-month highs at 0.9175 and is approaching the psychological level at 0.9000.
The euro loses ground against a stronger pound
The common currency is giving away gains after a nearly 3% rally over the last three weeks. The strength of the GBP/USD has pushed the pound higher across the board in spite of the looming concerns about Brexit uncertainty and the positive eurozone data seen earlier today.
According to the Eurozone Manufacturing PMI from June, economic activity in the sector improved to 47.4, beating expectations of a 46.9 reading, which shows that the industrial sector moves closer to the 50 level, the limit between activity contraction and growth.
In the UK, the Markit Manufacturing PMI has remained at 50.1 in June, unchanged from the previous month and broadly in line with the market expectations.
EUR/GBP to target 0.9308 in three-months – Commerzbank
On the bigger picture, the pair remains positive, and according to Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, aiming to 0.9308 over the next three-months, EUR/GBP is at three-month highs and already approaching the 61.8% retracement at 0.9184. Above here will trigger a move to 0.9308/23, this is the location of the 78.6% retracements of the move seen since March and the 2017 high at 0.9308 and this represents our initial upside target zone.”
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