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  • Pound among worst performer on Thursday, drops across the board.
  • EUR/GBP trend still points to the downside, but the momentum faded.

The EUR/GBP is rising sharply on Thursday, trimming weekly losses and removing the recent weakness. During the American session, the euro printed a fresh daily high at 0.8923. As of writing, it trades at 0.8920, near the top and far from the three-month lows it reached earlier today at 0.8865.

The sharp rise took place amid a decline of the pound across the board. It is the worst G10 performer affected by economic data from the United Kingdom, a decline in yields and the lack of progress regarding Brexit negotiations.

Technical outlook

The sharp reversal in EUR/GBP has weakened the technical outlook for the pound. Still the cross shows a bearish bias but the momentum eased. On the upside, the immediate resistance is seen at 0.8935 followed by 0.8970. A daily close above 0.9000 would negate the bearish bias.

On the flip side, a slide below 0.8905/10 would remove the current positive tone of the pound. The next support stands at 0.8885 followed by the low at 0.8865.  

Technical levels

 

Expert score

5

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