Home Forex News EUR/GBP Turns Bearish Drops to 3-Week Lows

EUR/GBP Turns Bearish Drops to 3-Week Lows

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  • £30 Billion U.K Stimulus Package
  • Brexit Talks Progress
  • Risk Aversion Impact

EUR/GBP selloff persisted on Friday as the British Pound remained bullish heading into the weekend. The pair remains vulnerable at three-week lows as the bid tone around the Pound continues to gather steam against the Euro.

Pound Resurgence

The Euro has come under pressure in recent sessions losing ground against the majors and the Pound. The result has been a selloff of the EUR/GBP pair that had initially clocked three-month highs on Euro strength.

Time                            : 07-10-2020

Pivot                           : 0.8966

Technical View           : Long Above 0.8946

Target                         : 0.8926 – 0.8907 – 0.8877

Comments                  : Bearish

Last Price                    : 0.8962

The selloff in the EUR/GBP pair is supported by bullish sentiment around the Sterling following the passing of the U.K’s £30 billion stimulus package. The package is part of the government push to revitalize an economy reeling from the effects of COVID-19 pandemic.

The Pound has also continued to strengthen against the Euro on growing optimism over a possible breakthrough in the BREXIT negotiations. Immediate reports indicate that the two parties are close to reaching an agreement on the issue of fishing rights.

EU Chief Negotiator indicating that the EU is willing to grant London access to the EU markets is another development that continues to affirm progress in the BREXIT talks. However, the U.K has turned down an opportunity to participate in an EU coronavirus vaccine scheme.

Euro Weakness

The EUR/GBP remains bearish on Euro weaken across the board on a spike in risk aversion. The single currency has lost f ground after one the longest run of gains against the dollar. Concerns that the U.S is considering imposing trade tariffs on Eurozone goods amounting to $3 billion has also continued not pile pressure on the Euro against the British Pound.

The Intraday bias on the EUR/GBP pair remains bearish with no major economic releases scheduled heading into the weekend.

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