Search ForexCrunch
  • EUR/GBP’s reversal from 0.9175 highs extends to levels near 0.9000.
  • The pound remains bid amid the strong GBP/USD rebound.

Euro reversal from three-month highs at 0.9175 on Monday extended on Wednesday to one-week lows at 0.9015. The euro is looking for support near the 0.9000 psychological level after a 1.7% depreciation over the last two days.

The pound appreciates across the board

The common currency is going through a downward correction, following a 3% rally over the last three weeks. The solid rebound of the GBP/USD has boosted the pound across the board despite the Brexit uncertainty and the positive eurozone manufacturing figures released earlier today.

Eurozone Manufacturing PMI from June showed that economic activity improved to 47.4, beating expectations of a 46.9 reading, which shows that the industrial sector advances towards the 50 level, which separates growth from contraction. On the other end, the UK Markit Manufacturing PMI Index remained at 50.1, unchanged from the previous month, and broadly in line with the market expectations.

EUR/GBP testing psychological support at 0.9000

On the downside, the pair might find support at 0.9000/15 area (Jun. 19, 25 lows), below here, the next potential support levels might be at 0.8900/15 50-day SMA and Jun.16 low) and 0.8865 (Jun. 8, 9 lows). Alternatively, an upside attempt might find resistance at 0.9080 intra-day high, and above there, 0.9175 (Jun. 29 high) and 0.9275 (Mar. 25 high).

EUR/GBP key levels to watch