Home Other News EUR/GBP Surges As GBP/USD Slumps On Pound Weakness Amid BREXIT Uncertainties

    EUR/GBP Surges As GBP/USD Slumps On Pound Weakness Amid BREXIT Uncertainties

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    • Brexit talks Uncertainties
    • Solid U.K PMI
    • U.K Negative Interest Push

    EUR/GBP pair edged higher as the GBP/USD slumped on the British Pound coming under pressure Tuesday morning. Weakness in the Sterling stems from growing concerns about BREXIT talks that are going on in London, after breaking down abruptly last week.

    Pound under Pressure

    The GBP/USD has struggled to edge higher after a recent bounce back from one-month lows. The 1.2525 level has emerged as a critical resistance level curtailing any upside action on the GBP/USD pair.

    Time                             : 07-07-2020

    Pivot                            : 1.2498

    Technical View            : Long above 1.2518

    Target                         : 1.2538 – 1.2549 – 1.2579

    Comments                  : Weak Bearish to Neutral

    Last Price                    : 1.2466

    Technical View           : Short below 1.2478

    Target                         : 1.2461 – 1.2447 – 1.2425

    The Pound is on the defensive against other major currencies amidst uncertainties around the U.K. Economic recovery following the COVID-19 disruption is one of the developments that has continued to rattle traders’ sentiments on the Pound.

    However, better than expected, data continues to limit weakness on the Sterling. For starters, immediate data indicates that the U.K manufacturing sector improved significantly in June with the Purchasing Managing Index printing a high of 55.3 from 28.9 in May.

    Recoveries in the manufacturing sector provide hope to other sectors, conversely offering support to the Pound against the U.S dollar. However, the GBP/USD pair remains susceptible to further declines, given the uncertainty around ongoing BREXIT talks.

    Euro Strength

    The EUR/GBP pair, on the other hand, is showing signs of accelerated upward movement from one-month lows. The bounce-back stems from weakness around the Sterling as the Euro continues to strengthen across the board.

    Time                            : 07-07-2020

    Pivot                           : 0.9046

    Technical View           : Long Above 0.9066

    Target                         : 0.9079 – 0.9089 – 0.9107

    Comments                  : Weak Bullish to Neutral

    Last Price                    : 0.9035

    Technical View           : Short below 0.9026

    Target                         : 0.9011 – 0.9003 – 0.8993

    The Euro has so far remained resilient against the Pound as traders remain optimistic about the Eurozone handling of the COVID-19 pandemic. The passing of a massive €1.35 trillion stimulus plan has continued to strengthen sentiments around the single currency.

    The British Pound, on the other hand, remains under pressure against the Euro amidst talk of negative interest rates, highly needed to revitalize the struggling U.K economy. Likewise, the Pound faces a lot of uncertainties around the Brexit talks as well as the economic recovery in the aftermath of COVID-19.

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